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 440,000 executive stock options permitting executives to buy 440,000 shares of Pastner stock for $36 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 measures 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: 10 points Vesting Date Dec 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Amount vesting 25 25 258 25 Fair Value per Option 53.70 $4.20 $4.50 $5.20 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. Answer is not complete 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.) 2019 Total 407,000 462,000 165,000 143,000 at: 2018 2020 2021 31 407,000 2018 Dec 2019 Dec. 31 2020 231000s 231,000 165,000 143,000 2021 Total S 946,000 231,000I 0 1,177,000 Required 1 Required 2>