Exercise 19-9 (Algo) Stock options; exercise [LO19-2] SSG Cycles manufactures and distributes motorcycle parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, SSG granted options to key officers on January 1, 2024. - The options permit holders to acquire 5 million of the company's $1 par common shares for $29 within the next six years, but not before January 1,2027 (the vesting date). - The market price of the shares on the date of grant is $31 per share. - The fair value of the 5 million options, estimated by an appropriate option pricing model, is $8.70 per option. Required: 1. Determine the total compensation cost pertaining to the incentive stock option plan. 2. \& 3. Prepare the appropriate journal entries to record compensation expense on December 31, 2024, 2025 , and 2026. Record the exercise of the options if all of the options are exercised on May 11,2028 , when the market price is $32 per share. Complete this question by entering your answers in the tabs below. Determine the total compensation cost pertaining to the incentive stock option plan. Note: Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5)