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I will give a thumbs up. Paster Brands is a calendar year firm with operations in several countries. As part of its executive compensation plan,
I will give a thumbs up.
Paster Brands is a calendar year firm with operations in several countries. As part of its executive compensation plan, at January 1 2021, the company issued 480,000 executive stock options permitting executives to buy 480,000 shares of Pastner stock for $40 per share. One-fourth of the options vest in each of the next four years beginning at December 31, 2021 (graded vesting). Pastner elects to separate the total ward into four groups for tranches) according to the year in which they vest and measures the compensation cost for each vesting date as a separate award. The fair value of each tranche is estimated at January 1, 2021. as follows: Acunt Fair Value Vertine Date Vesting per Option Dec. 11, 2021 $4.10 Dec 31, 2022 25 $4.60 Dec. 3. 2023 $5.40 Dec 31, 2004 $5.60 25 Required: 1. Determine the compensation expense related to the options to be recorded each year 2021-2024, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately 2. Determine the compensation expense related to the options to be recorded each year 2021-2024, assuming Pastner uses the straight line method to allocate the total compensation cost Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the compensation expense related to the options to be recorded each year 2021-2024, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately. (Enter your answers in whole dollars.) Shares Compensation Expense in: Vesting at 2021 2022 2023 2024 Total Dec 31, 2021 $ 0 Dec 31, 2022 Dec 31, 2023 0 Dec 31, 2024 0 Total $ 0 $ 0 $ 0 $ 0 $ 0 0 Read 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the compensation expense related to the options to be recorded each year 2021-2024, assuming Pastner uses the straight-line method to allocate the total compensation cost. (Enter your answers in whole dollars.) 2021 2022 2023 2024 Compensation expense Total $ 0 Step by Step Solution
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