Pastner Brands is a calendar-year firm with operations in several countries. As part of its executive compensation plan, at January 1, 2021, 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, 2021 (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, 2021, as follows: Vesting Date Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 Amount Vesting 255 25 25 25 Fair Value per Option $3.50 $4.00 $4.50 $5.00 Assume Postner prepares its financial statements using International Financial Reporting Standards (IFRS). Required: Determine the compensation expense related to the options to be recorded each year 2021-2024, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately. (Enter your answers in thousands.) $ Shares Vesting at Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 Total 2021 350,000 200,000 s 150.000 125,000 825,000 $ Compensation Expense Recorded in: 2022 2023 2024 Total $ 350,000 200,000 400,000 150,000 $ 150,000 450,000 112,500 112,500 $ 112,500 462,500 462,500 5 262,500 $ 112,500 $ 1,562,500 $