Martinez Audio Visual Incorporated offers an incentive stock option plan to its regional managers. On January 1, 2024, options were granted for 8 million $1 par common shares. The exercise price is the market price on the grant date-$6 per share. Options cannot be exercised prior to January 1, 2026, and expire December 31, 2030. The fair value of the 8 million options, estimated by an appropriate option pricing model, is $1 per option. Required: 1. Determine the total compensation cost pertaining to the incentive stock option plan. 2. to 5. Prepare the appropriate journal entries to record compensation expense on December 31, 2024 and 2025. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2026, when the market price is $7 per share and the entry on December 31, 2030, when the remaining options that have vested expire without being exercised. Answer is not complete. Complete this question by entering your answers in the tabs below. Re 1 Req 2 to 5 Determine the total compensation cost pertaining to the incentive stock option plan. Note: Enter your answer in millions (i.e., 10,000,000 should be entered as 10). Total compensation cost 8 million Req 1 Req 2 to 5 Prepare the appropriate journal entries to record compensation expense on December 31, 2024 and 2025. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2026, when the market price is $7 per share and the entry on December 31, 2030, when the remaining options that have vested expire without being exercised. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Show less A No 1 Date December 31, 2024 Compensation expense General Journal Debit Credit 4 Paid-in capital-stock options 2 December 31, 2024 Compensation expense 4 Paid-in capital-stock options 4 3 March 12, 2026 Cash 4 Paid-in capital-stock options Common stock Paid-in capital-expiration of stock options December 31, 2030 Paid-in capital-stock options Paid-in capital-expiration of stock options