Heldi Software Corporation provides a varlety of share-based compensation plans to its employees. Under its executive stock option Ian, the company granted options on January 1,2024 , that permit executives to acquire 4 million of the company's $1 par common hares within the next five years, but not before December 31, 2025 (the vesting date). - The exercise price is the market price of the shares on the date of grant, $14 per share. - The fair value of the 4 million options, estimated by an appropriate option pricing model, is $3 per option. - No forfeltures are anticipated. - Ignore taxes. equired: 1. Determine the total compensation cost pertaining to the options. 2. Prepare the approprlate joumal entry to record the award of options on January 1,2024. 3. Prepare the approprlate joumal entry to record compensation expense on December 31,2024 4. Prepare the appropriate journal entry to record compensation expense on December 31,2025. Complete this question by entering your answers in the tabs below. Determine the total compensation cost pertaining to the options. Notel Enter your answer in millions (i.e., 10,000,000 should be entered as 10). HeIdi Software Corporation provides a varlety of share-based compensation plans to its employees. Under its executive stock option plan, the company granted options on January 1, 2024, that permit executives to acquire 4 million of the company's $1 par common shares within the next five years, but not before December 31,2025 (the vesting date). - The exercise price is the market price of the shares on the date of grant, $14 per share. - The fair value of the 4 million options, estimated by an appropriate option pricing model, is \$3 per option. - No forfeltures are anticipated. - Ignore taxes. Required: 1. Determine the total compensation cost pertaining to the options. 2. Prepare the appropriate journal entry to record the award of options on January 1,2024. 3. Prepare the appropriate joumal entry to record compensation expense on December 31,2024. 4. Prepare the appropriate journal entry to record compensation expense on December 31,2025 Complete this question by entering your answers in the tabs below. 2. Prepare the appropriate journal entry to record the award of options on January 1,2024. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2024. 4. Drepare the appropriate journal entry to record compensation expense on December 31,2025. Heter if no entry ia required for a transaction/event, select "No journal entry required in the first account field. Enter your anuwer in milians (1a - 10,000,000 should be entered an 10)
