On January 1, 2017, Cable Corporation Issues 11,500 Stock-Appreciation Rights $\begin{array}{|l|r|}\hline \text { Compensation Expense } & 11,500 \\\hline \text { Obligation under SAR Plan } & 11,500\\\hline\end{array}$

On January 1, 2017, Cable Corporation issues 11,500 stock-appreciation rights to its key executives. The terms of the plan state that the holders of the rights will receive a cash payment equal to the difference between the market price of the stock on the date of exercise and the pre-established price of $9 per share. There is a three-year vesting period and the rights may be exercised on January 1, 2020. The rights expire on January 1, 2022. The closing market prices follow: December 31, 2017 $12 per share
December 31, 2018 $15 per share
December 31, 2019 $14 per share
What is the appropriate journal entry on December 31, 2017? (Do not round any intermediate calculations. Round your final answer to the nearest dollar.)

A) $\begin{array}{|l|r|}\hline \text { Compensation Expense } & 11,500 \\\hline \text { Obligation under SAR Plan } & 11,500\\\hline\end{array}$

B) $$\begin{array} { | c | r | r | } \hline \text { Obligation under SAR Plan } & 103,500 & \\\hline \text { Deferred Compensation } & & 103,500 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Compensation Expense } & 138,000 & \\\hline \text { Obligation under SAR Plan } & & 138,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Compensation Expense } & 15,333 & \\\hline \text { APIC-SAR } & & 15,333 \\\hline\end{array}$$