Can someone please help. Thanks

SC Masterpiece Inc. granted 1,000 stock options to certain sales employees on January 1, Year 1. The options vest at the end of three years (cliff vesting) but are conditional upon selling 20,000 cases of barbecue sauce over the three-year service period. The grant-date fair value of each option is $30. No forfeitures are expected to occur. The company is expensing the cost of the options on a straight-line basis over the three-year period at $10,000 per year (1,000 options $30 3 = $10,000).

Page 195 On January 1, Year 2, the companys management believes the original sales target of 20,000 units will not be met because only 5,000 cases were sold in Year 1. Management modifies the sales target for the options to vest to 15,000 units, which it believes is reasonably achievable. The fair value of each option at January 1, Year 2, is $28.

Required:

Determine the amount to be recognized as compensation expense in Year 1, Year 2, and Year 3 under (a) IFRS and (b) U.S. GAAP. Prepare the necessary journal entries.

2) Ontario Trust Corporation (OTC) purchased 5,000 shares of Lilly Company for $25 per share on November 1, Year 1. As allowed under IFRS 9, OTC chose to classify its investment in Lillys equity as FVOCI at the time of purchase. Lilly paid a dividend of $1.10 per share on December 1. The year-end market price of Lillys stock was $28. OTC subsequently sold all 5,000 shares for $27.

Required:

Prepare the journal entries required under IFRS as well as those that would be required under U.S. GAAP. Comment on how the investment in Lilly affected OTCs pre-tax income in Years 1 and 2, as well as how income would differ if OTC were a U.S. company.