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Exercise 19-8 (Algo) Stock options exercise; expirations [LO19-2] Walters Audio Visual inc, offers an incentive stock option plan to its regional managers. On January 1,

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Exercise 19-8 (Algo) Stock options exercise; expirations [LO19-2] Walters Audio Visual inc, offers an incentive stock option plan to its regional managers. On January 1, 2021, options were granted for 52 million $1 par common shares. The exercise price is the market price on the grant date- $8 per share. Options cannot be exercised prior to January 1, 2023, and expire December 31, 2027. The fair value of the 52 million options, estimated by an appropriate option pricing model, is $1 per option. Required: 1. Determine the total compensation cost pertaining to the incentive stock option plan 2. to 5. Prepare the appropriate journal entries to record compensation expense on December 31, 2021 and 2022. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12,2023 , when the market price is $9 per share and the entry on December 31, 2027, when the remaining options that have vested expire without being exercised. Complete this question by entering your answers in the tabs below. Determine the total compensation cost pertaining to the incentive stock option plan. (Enter your answar in milions fi.e., 10,000,000 should be entered as 10 ).) quired: Determine the total compensation cost pertaining to the incentive stock option plan. to 5. Prepare the appropriate journal entries to record compensation expense on December 31, 2021 and 2022. Prepare the entry on December 31,2027 , when the remaining options that have vested expire without being exercised. is $9 per share and Complete this question by entering your answers in the tabs below. Prepare the appropriate journal entries to record compensation expense on December 31,2021 and 2022. Prepare the appropriate fournal entry to record the exercise of 75% of the options on March 12, 2023, when the market price is $9 per share and the entry on December 31,2027 , when the remaining options that have vested expire without being exerdised. (II no entry is required for a transaction/event, select "No joumal entry required" in the fint account fleld. Enter your answers in millions (1.e, 10,000,000 should be entered as 10).) Journal entry worksheet Record compensation expense on December 31,2021. Hoter Enter debith belore gredits

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