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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.Required
Determine the compensation expense related to tho ontinnc to ho rororded each year assuming Pastner allocates
the compensation cost for each of the four groul Assessment Tool iFrame aly.
Note: Enter your answers in whole dollars.Assessment Tool iFrame quired
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.
Note: Enter your answers in whole dollars.
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