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 $320,000$ executive stock options permitting executives to buy $320,000$ shares of Pastner stock for $$29$ 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 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 $2024-2027,$ assuming Pastner uses the

straight$-$line method to allocate the total compensation cost.

Complete this question by entering your answers in the tabs below.

Required $1$

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

the compensation cost for each of the four groups $($tranches$)$ separately.

Note: Enter your answers in whole dollars.