Compensation Expense Assignment

10 Pastner Brands is a calendar-year firm with operations in several countries. As part of its executive compensation plan, at January 1, 2018, the company issued 280,000 executive stock options permitting executives to buy 280,000 shares of Pastner stock for $27 per share. One-fourth of the options vest in each of the next four years beginning at December 31, 2018 (graded vesting).

Pastner elects to separate the total award into four groups (or tranches) according to the year in which they vest and measure the compensation cost for each vesting date as a separate award. The fair value of each tranche is estimated at January 1, 2018, as follows: pints Fair Value Vesting Amount Vesting 25% per Option $4.90 Date Dec. 31, 2018, Dec. 31, 2019, Dec. 31, 2020, Dec. 31, 2021 eBook $5.40 258 25% $5.70 $6.40 25% Print Required: 1. Determine the compensation expense related to the options to be recorded each year 2018-2021, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately 2. Determine the compensation expense related to the options to be recorded each year 2018-2021, assuming Pastner uses the straight-line method to allocate the total compensation cost References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the compensation expense related to the options to be recorded each year 2018-2021, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately. (Enter your answers in thousands.) Shares Compensation Expense in: Vesting at: 2018 2019 2020 2021 Total Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 0 0 0 10 Vesting Fair Value Amount Vesting 258 per Option $4.90 $5.40 Date Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 258 25% $5.70 258 $6.40 ints Required: 1. Determine the compensation expense related to the options to be recorded each year 2018-2021, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately. 2. Determine the compensation expense related to the options to be recorded each year 2018-2021, assuming Pastner uses the straight-line method to allocate the total compensation cost eBook Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Determine the compensation expense related to the options to be recorded each year 2018-202 1, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately. (Enter your answers in thousands.) Shares Compensation Expense in: 2018 2019 2020 2021 Total Vesting at: Dec. 31, 2018 0 Dec. 31, 2019 0 Dec. 31, 2020 Dec. 31, 2021 S 0S 0S 0 Total Required1 Required 2..