ACC 3020 FA 2019 Class exercise: Ch 18-19 Ch. 19 On January 3, 2019 Albert Company granted stock options to key officers. The options permit holders to acquire 8 million shares of the company's $1 par common stock for $37 per share. The options vest on January 1, 2022 and expire on December 31, 2025. On the date of the grant the market price of Albert's stock was $40 per share. The fair value of each option was determined to be $12 using a lattice-based option valuation model. Under IRS rules the plan does not qualify as an incentive plan. Albert's tax rate is 30% 1. Determine the total compensation cost for the stock option plan. 2. Show the journal entries to record the compensation expense associated with the stock option plan and its tax effect on December 31, 2019. 3. All options were exercised in 2024 when the market price of Albert's shares was $46 per share. Show the journal entry or entries (including any tax effects)