Pastner Brands is a calendar$-$year firm with operations in several countries. As part of its executive compensation plan, at January $1,2024,$ the company issued $400,000$ executive stock options permitting executives to buy $400,000$ shares of Pastner stock for $$34$ per share. One$-$fourth of the options vest in each of the next four years beginning at December $31,2024($graded vesting$).$ Pastner elects to separate the total award into four groups $($or tranches$)$ according to the year in which they vest and measures the compensation cost for each vesting date as a separate award. The fair value of each tranche is estimated at January $1,2024,$ as follows:Required:

Determine the compensation expense related to the options to be recorded each year $2024-2027,$ assuming Pastner prepares its

financial statements using International Financial Reporting Standards $($IFRS$).$

Note: Enter your answers in whole dollars.

Vesting Date Amount Vesting Fair Value per Option

December $31,202425\%$ $ $3\mathrm{.}50$

December $31,202525\%$ $ $4\mathrm{.}00$

December $31,202625\%$ $ $4\mathrm{.}50$

December $31,202725\%$ $ $5\mathrm{.}00$

Assume Pastner prepares its financial statements using International Financial Reporting Standards $($IFRS$).$

Required:

Determine the compensation expense related to the options to be recorded each year $20242027,$ assuming Pastner prepares its financial statements using International Financial Reporting Standards $($IFRS$).$