Pastner Brands is a calendar-year firm with operations in several countries. As part of its executive compensation plan, at January 1, 2018, 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, 2018 (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, 2018, as follows: Amount Fair Value Vesting per Option 258 $5.10 Vesting Date Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 258 $5.60 25% $6.60 25% $6.60 Required: 1. Determine the compensation expense related to the options to be recorded each year 2018-2021, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately. 2. Determine the compensation expense related to the options to be recorded each year 2018-2021, 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 Required 1 2 Determine the compensation expense related to the options to be recorded each year 2018-2021, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately. (Enter your answers in thousands.) Show less Shares Compensation Expense in: Vesting at: 2018 2019 2020 2021 Total Dec. 31. 2018 $ 0 Dec. 31, 2019 0 Dec. 31, 2020 0 Dec. 31. 2021 Total 0 $ 0 $ 0 $ 0 $ 0 0