On January 1, 2009, as a form of executive compensation, Wadlin Corporation grants share appreciation rights to Robert Brandt. These rights entitle Brandt to receive cash equal to the excess of the quoted market price over a $20 option price for 4,000 shares of the company's common stock on the exercise date. The service period is three years (which Brandt is expected to complete) and the rights must be exercised within five years. Brandt exercises his rights on December 31, 2012. The fair value per SAR was as follows: 12/31/09, $3.00; 12/31/10, $4.20; 12/31/11, $4.00; and 12/31/12, $5.00. The quoted market price per share of common stock was $25 on December 31, 2012.

Required:
1. Prepare a schedule to compute the compensation expense related to this SAR plan for 2009 through 2012.
2. Prepare the December 31, 2012 journal entry related to this SAR plan.