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On January 1, 2021. Adams-Meneke Corporation granted 25 milion Incentive stock options to division managers, each permitting holders to purchase one share of the company's

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On January 1, 2021. Adams-Meneke Corporation granted 25 milion Incentive stock options to division managers, each permitting holders to purchase one share of the company's $i par common shares within the next six years, but not before December 31, 2023 (the vesting date. The exercise price is the market price of the shares on the date of grant, currently $10 per share the fair value of the options estimated by an appropriate option pricing model is $3 per option Management's policy is to estimate forfeltures. No forfeitures are anticipated Ignore taxes. Required: 1. Determine the total compensation cost pertaining to the options on January 1, 2021 2. Prepare the appropriate Joumal entry to record compensation expense on December 31, 2021. 3. Unexpected turnover during 2022 caused an estimate of the forfelture of 6% of the stock options. Prepare the appropriate journal entry(s) on December 31, 2022 and 2023 in response to the new estimate & Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required 2 Required Determine the total compensation cost pertaining to the options on January 1, 2021. (Enter your answer in millions (iew 10,000,000 should be entered a 20). Total compensation cost $ 300 million Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the appropriate journal entry to record compensation expense on December 31, 2021. (If no entry is required for transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to decimal place (ie., 5,500,000 should be entered as 5.5)) No Debit Credit 1 Date General Journal December 31, 202 Compensation expense Paid-in capital - stock options transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions round decimal place che, 5,500,000 should be entered as 5.5))) Sh No Debit Credit 1 Date General Journal December 31, 202 Compensation expense Paid-in capital - stock options SI 2 December 31, 202 Compensation expense Paid-in capital - stock options SIS

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