Exhibit $15-5$

On January $1,2016,$ Roberts Company adopts a compensatory share option plan and grants $40$ executives $1,000$ shares each at $$30$ a share. The fair value per option is $$7$ on the grant date. The company estimates that its annual employee turnover rate during the service period of three years will be $4\%.$

Refer to Exhibit $15-5.$ At the end of $2017,$ the company estimates that the employee turnover will be $5\%$ a year for the entire service period. The compensation expense for $2017$ will be $($Round your answer to the nearest whole dollar.$)$

a$.$ $$77,468$

b$.$ $$80,022$

c$.$ $$82,575$

d$.$ $$160,043$

Refer to Exhibit $15-5.$ At the end of $2017,$ the company estimates that the employee turnover will be $5\%$ a year for the entire service period. At the end of $2018,$ only $30,000$ options vest as only $30$ of the $40$ executives actually remain. The compensation expense for $2018$ will be $($Round off turnover calculations to three decimal places and answer to the nearest dollar.$)$

a$.$ $$49,957$

b$.$ $$70,000$

c$.$ $$80,022$

d$.$ $$82,575$