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 440,000 executive stock options permitting executives to buy 440,000 shares of Pastner stock for $39 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 as given below.

Vesting Date	Amount Vesting
Dec. 31, 2018		25	%
Dec. 31, 2019		25	%
Dec. 31, 2020		25	%
Dec. 31, 2021		25	%

Assume Pastner measures the fair value of all options on January 1, 2018, to be $4.80 per option using a single weighted-average expected life of the options assumption. Required: 1. Determine the compensation expense related to the options to be recorded each year 20182021, 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 20182021, assuming Pastner uses the straight-line method to allocate the total compensation cost.