Top-flite manufactures strata golf balls and prices these balls at about three times what ordinary golf balls costs. the strata ball is selling exceptionally well because customers perceive the ball’s patented three-layer construction to improve handling and increase distance. the patent on these golf balls gives top-flite a(n):

On december 31, 2013, coronado company issues 173,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. the fair value of the sars is estimated to be $5 per sar on december 31, 2014; $2 on december 31, 2015; $10 on december 31, 2016; and $8 on december 31, 2017. the service period is 4 years, and the exercise period is 7 years. prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.