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On January 1, 2024, Adam5-Meneke Corporation granted 120 million incentive stock options to division managers, each permirting holders 10 purchase one share of the company's

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On January 1, 2024, Adam5-Meneke Corporation granted 120 million incentive stock options to division managers, each permirting holders 10 purchase one share of the company's $1 pat common shares withen the next 51x years, but not before December 31,2026 (the vesting date). - The exercise phce is the market price of the shares on the date of grant, currently $46 per share - The fair value of the options, estimated by an opproprlate option pricing model, 15$4 per option. - Management's policy is to estimate forfeltures - No forfertures are anticipated - Ignore taxes Required: 1. Determine the total compensation cost pertaining to the options on January 1,2024 2. Prepare the appropriate journal enty to record compensation expense on December 31,2024 3. Unexpected tumover dunng 2025 caused an estimate of the forfeiture of 5% or the stock options. Prepare the approphate journal entry(s) on December 31,2025 and 2026 in resoonse to the new estimate. Complete this question by entering your answers in the tabs below. Unexpected turnover duning 2025 caused an estimate of the forfeiture of 5% of the stock options. Prepare the appropriate journal entry(s) on December 31,2025 and 2026 in response to the forfeiture of 59 ostimate. Note: if no entry is required for a transaction/event, select " No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in mulions rounded to 1 decimel places (i.e, 5,500,000 should be entered as 5.50 ). shove less a Journal entry worksheet Unexpected turnover during 2025 caused an estimate of the forfeiture of 5% of the stock options. Prepare the appropnate journal entry(s) on December 31,2025 and 2026 in response to the new estimate. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field, Do not round intermediate calculations. Enter your answers in millions rounded to 1 decmal places (f.e., 5,500,000 should be entered as 5.50). Journal entry worksheet

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