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Exercise 19-8 Stock options exercise; expirations (LO19-2] Walters Audio Visual Inc. offers an incentive stock option plan to its regional managers. On January 1, 2018,

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Exercise 19-8 Stock options exercise; expirations (LO19-2] Walters Audio Visual Inc. offers an incentive stock option plan to its regional managers. On January 1, 2018, options were granted for 60 million $1 par common shares. The exercise price is the market price on the grant date-$10 per share. Options cannot be exercised prior to January 1, 2020, and expire December 31, 2024. The fair value of the 60 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, 2018 and 2019. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2020, when the market price is $11 per share and the entry on December 31, 2024, when the remaining options that have vested expire. Complete this question by entering your answers in the tabs below. Regi "Reg 2 to 5 Determine the total compensation cost pertaining to the incentive stock option plan. (Enter your answer in millions (.e., 10,000,000 should be entered as 10).) Total compensation cost million Req 2 to 5 > Reg 1 Reg 2 to 5 Prepare the appropriate journal entries to record compensation expense on December 31, 2018 and 2019. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2020, when the market price is $11 per share and the entry on December 31, 2024, when the remaining options that have vested expire. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Show less View transaction list 1 Record compensation expense obecember 31, 2018. 2 Record compensation expense on December 31, 2019. 3 Record the exercise of 75% of the options on March 12, 2020, when the market price is $11 per share. 4 Record expiration of options. I Credit Note : - journal entry has been entered Record entry Clear entry View general journal

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