On january 1, 2016, margarita company granted share appreciation rights (sars) to the president, which permitted her to receive cash or stock for the difference between the quoted market price and $50 for 2,000 shares of the company's stock on the exercise date. the service period ends on december 31, 2018, and the rights must be exercised by december 31, 2021. assume that on december 31, 2019, the president exercises all of her rights and receives cash. the per share estimated fair values of the sars were as follows: • option price: market price on date of grant • service period: 4 years • exercise limit: within 6 years after the service period has expired on january 1, 2012, sarah mendelson was granted sars to 10,000 shares of the company's common stock under the requirements of the sar plan. she is expected to complete the service period and receive cash on the date of exercise. on december 31, 2016, mendelson exercised her rights to receive $27,000 cash and the remainder in common stock. the fair value per sar was as follows: 12/31/12, $4.00; 12/31/13, $4.10; 12/31/14, s3.80; 12/31/15, $5.50; and 12/31/16, $6.00. the quoted market price per share of common stock was s16 on january 1, 2012, and $22 on december 31, 2016. required: 1. prepare a schedule to compute the compensation expense related to this sar plan for 2012 through 2016. 2. prepare the journal entries related to the sar plan on december 31, 2012, through december 31, 2016.