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JBL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, JBL

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JBL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, JBL granted options to key officers on January 1, 2018. The options permit holders to acquire 7.5 million of the company's $1 par common shares for $20 within the next six years, but not before January 1, 2021 (the vesting date). The market price of the shares on the date of grant is $24 per share. The fair value of the 7.5 million options, estimated by an appropriate option pricing model, is $6 per option. Because the plan does not qualify as an incentive plan, JBL will receive a tax deduction upon exercise of the options equal to the excess of the market price at exercise over the exercise price. The tax rate is 40%. Required: 1. Determine the total compensation cost pertaining to the incentive stock option plan. 2. & 3. Record the necessary journal entries on December 31, 2018, 2019, and 2020. Assume all of the options are exercised on August 21, 2022, when the market price is $25 per share. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Determine the total compensation cost pertaining to the incentive stock option plan, (Enter your answer in millions (I.e., 10,000,000 should be entered as 10).) Total compensation cost milion Reg 2 and 3 > Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Record the necessary journal entries on December 31, 2018, 2019, and 2020. Assume all of the options are 2022, when the market price is $25 per share. (If no entry is required for a transaction/event, select "No jou first account field. Enter your answers in millions rounded to 1 decimal place (I.e., 5,500,000 should be ente View transaction list Journal entry worksheet

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