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All parts please and explain so I can understand it! n January 1, 2018, Adams-Meneke Corporation granted 15 million incentive stock options to division managers,

image text in transcribedAll parts please and explain so I can understand it!

n January 1, 2018, Adams-Meneke Corporation granted 15 million incentive stock options to division managers, each permitting holders to purchase one share of the company's $1 par common shares with in the next six years, but not before December 31, 2020 (the vesting date). The exercise price is the market price of the shares on the date of grant, currently $12 per share. The fair value of the options, estimated by an appropriate option pricing model, is $2 per option. Management's policy is to estimate forfeitures. No forfeitures are anticipated. Ignore taxes Required: 1. Determine the total compensation cost pertaining to the options on January 1, 2018. 2. Prepare the appropriate journal entry to record compensation expense 3. Unexpected turnover during 2019 caused an estimate of the forfeiture of 5% of the stock options. Determine the adjusted compensation cost, and prepare the appropriate journal entry(s) on December 31, 2019 and 2020. December 31, 2018 on

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