On January 1, 20X1, Fielding Company initiated an employee stock-based compensation plan that grants 80,000 stock appreciation rights (SARs) to employees on January 1, 20X1, which will pay the exerciser of each cash SAR an amount equal to the excess of the share price on the exercise date over the $4 threshold price. Under the contract, the cash SARs fully vest and become exercisable on January 1, 20X3 if the employees continue working for Fielding Company for that two-year service period. Fielding cannot elect to settle the award in stock. The cash SARs are exercisable any time between January 1, 20X3 and December 31, 20X3. January 1, 20X1 SAR value = $1.00 per SAR (based on option pricing formula) December 31, 20X1 SAR value = $2.80 per SAR (based on option pricing formula) December 31, 20X2 SAR value = $5.10 per SAR (based on option pricing formula) Which of ONE the following should be included in the journal entry necessary on the books of Fielding Company on December 31, 20X2? Note: This is the end of the SECOND year. DEBIT to Compensation Expense of $408,000 DEBIT to SAR Liability of $408,000 DEBIT to SAR Liability of $296,000 DEBIT to Compensation