On January 1, 2017, SaulGroup, Inc. granted 2,000 stock options to its senior

employees. The options vest in equal installments over three years with 1/3 vest in

2017, 1/3 in 2018, and 1/3 in 2019. The company is experiencing the cost of the

options on a straight-line basis over the three-year period at $20,000 per year (2,000

options x $30 / 3 = $20,000)

a. How is the amount of compensation expense treated in 2017 and subsequent

years under (1) U.S. GAAP and (2) IFRS? Include journal entries.