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On January 1, 2024, Farmer Fabrication issued stock options for 150,000 shares to a division manager. The options have an estimated fair value of $5

On January 1, 2024, Farmer Fabrication issued stock options for 150,000 shares to a division manager. The options have an estimated fair value of $5 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 3% in three years. Farmer initially estimates that it is probable the goal will be achieved.

How much compensation will be recorded in 2024, 2025, 2026?

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