On January 1, 2017, Cable Corporation Issues 12,500 Stock-Appreciation Rights $$\begin{array} { |l | r | r | } \hline \text { Obligation under SAR Plan } & 50,000 & \\\hline \text { Cash } & & 50,000 \\\hline\end{array}$$

On January 1, 2017, Cable Corporation issues 12,500 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 $8 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 $11 per share
December 31, 2018 $14 per share
December 31, 2019 $12 per share
What is the appropriate journal entry when the stock-appreciation rights are exercised on January 1, 2020 when the market price is $12 per share?

A) $$\begin{array} { |l | r | r | } \hline \text { Obligation under SAR Plan } & 50,000 & \\\hline \text { Cash } & & 50,000 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Obligation under SAR Plan } & 150,000 & \\\hline \text { Deferred Compensation } & & 150,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Compensation Expense } & 150,000 & \\\hline \text { Obligation under SAR Plan } & & 150,000 \\\hline\end{array}$$
D) $\begin{array}{|l|r|r|} \hline \text {Cash } &15,000\\\hline \text { APIC-SAR } &&15,000\\\hline\end{array}$