Exercise 19-9 (Algo) Stock options; exercise [LO19-2] SSG Cycles manufoctures and distributes motorcycle parts and supplies. Employees are offered a variety of share-bosed compensation plans. Under its nonqualified stock opton plan, 556 granted options to key ofticers on January 1,2024 - The optioos permit holders to acquire 24 milion of the company/s 51 par common shares for 511 within the next six years, but not before January 1,2027 (the vesting date). - The morket price of the shares on the date of grant is $13 par share. - The fal volue of the 24m lit on options, estimated by an appropriate option pricing model, is $33.30 per option. Roquired: 1. Determine the total compensation cost pertaining to the incentive stock option plan. 2. 8. 3. Prepare the appropriate journal entries to record compensotion expense on Oecember 31, 2024, 2025, and 2026. Record the exerclse of the options if all of the options ere exerelised on May 11, 2028, when the market price is 514 per share. Complete this question by entering your answers in the tabs below. Prepsere the appeopriate journal entries to record compensation expense on Cecember 31,2024,2025, and 2026, Record the exercise of the options if all of the options are exerosed on May 11, 2028, when the market price is $14 per share. Notei. If no entry is required for a transactionvevent, select "No journal entry required" in the first account field. Oo not round show less A Exercise 19-9 (Algo) Stock options; exercise [LO19-2] SSG Cycles manufoctures and distributes motorcycle parts and supplies. Employees are offered a variety of share-bosed compensation plans. Under its nonqualified stock opton plan, 556 granted options to key ofticers on January 1,2024 - The optioos permit holders to acquire 24 milion of the company/s 51 par common shares for 511 within the next six years, but not before January 1,2027 (the vesting date). - The morket price of the shares on the date of grant is $13 par share. - The fal volue of the 24m lit on options, estimated by an appropriate option pricing model, is $33.30 per option. Roquired: 1. Determine the total compensation cost pertaining to the incentive stock option plan. 2. 8. 3. Prepare the appropriate journal entries to record compensotion expense on Oecember 31, 2024, 2025, and 2026. Record the exerclse of the options if all of the options ere exerelised on May 11, 2028, when the market price is 514 per share. Complete this question by entering your answers in the tabs below. Prepsere the appeopriate journal entries to record compensation expense on Cecember 31,2024,2025, and 2026, Record the exercise of the options if all of the options are exerosed on May 11, 2028, when the market price is $14 per share. Notei. If no entry is required for a transactionvevent, select "No journal entry required" in the first account field. Oo not round show less A
