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Pastner Brands is a calendar - year firm with operations in several countries. As part of its executive compensation plan, at January 1 , 2
Pastner Brands is a calendaryear firm with operations in several countries. As part of its executive compensation plan,
at January the company issued executive stock options permitting executives to buy shares
of Pastner stock for $ per share. Onefourth of the options vest in each of the next four years beginning at December
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 as follows:
Required:
Determine the compensation expense related to the options to be recorded each year assuming
Pastner allocates the compensation cost for each of the four groups tranches separately.
Determine the compensation expense related to the options to be recorded each year assuming
Pastner uses the straightline method to allocate the total compensation cost.
Complete this question by entering your answers in the tabs below.
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Determine the compensation expense related to the options to be recorded each year assuming Pastner
allocates the compensation cost for each of the four groups tranches separately.
Note: Enter your answers in whole dollars.
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