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 480,000 executive stock options permitting executives to buy 480,000 shares of Pastner stock for $38 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: Vesting Date Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2820 Dec. 31, 2821 Amount Vesting 25% 25% 25% 25% Fair Value per Option $3.90 $4.40 $4.90 $5.40 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below Required Required 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.) Answer is complete but not entirely correct Complete this question by entering your answers in the tabs below Required 1 Required 2 Determine the compensation expense related to the options to be recorded each year 2018-2021, assuming Pastner allocates the comensation cost for each of the four groups (tranches) separately. (Enter your answers in thousands.) Shares Compensation Expense in: 2021 Vesting at: Dec. 31 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Tota 2018 2019 2020 Total $ 468,000 528,000 588,000 648,000 $1,090,000 S 622,000 358,000 162,000 2,232,000 $ 468,000 264,000 x $ 264,000 196,000 162,000 196,000 X $ 196,000 162,000 162,000 x $ 162,000 Required 1 Required 2