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JBL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, JBL granted options to key officers on January 1, 2021. The options permit holders to acquire 8 million of the company's Si par common shares for $20 within the next six years, but not before January 1, 2024 (the vesting date). The market price of the shares on the date of grant is $24 per share. The fair value of the million options, estimated by an appropriate option pricing model, is 56 per option. Because the plan does not qualify as an incentive plan, JBL will receive a tax deduction upon exercise of the options equal to the excess of the market price at exercise over the exercise price. The tax rate is 25%. Required: 1. Determine the total compensation cost pertaining to the incentive stock option plan. 2. Prepare the appropriate journal entries to record compensation expense and its tax effect on December 31, 2021 2022 and 2023. 3. Record the exercise of the options and their tax effect it all of the options are exercised on August 21, 2025, when the market price is 525 per share Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Determine the total compensation cost pertaining to the Incentive stock option plan. (Enter your answer in millions (l. 10,000,000 should be entered as 10).) Total compostost million Reg 2 and 3 > JBL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety of share based compensation plans. Under its nonqualified stock option plan, JBL granted options to key officers on January 1, 2021 The options permit holders to acquire 8 million of the company's St par common shares for $20 within the next six years, but not before January 1, 2024 (the vesting datel The market price of the shares on the date of grant is 524 per share. The fair value of the million options, estimated by an appropriate option pricing model, is 56 per option Because the plan does not qualify as an incentive plan, JBL will receive a tax deduction upon exercise of the options equal to the excess of the market price at exercise over the exercise price. The tax rate is 25% Required: 1. Determine the total compensation cost pertaining to the incentive stock option plan 2. Prepare the appropriate journal entries to record compensation expense and its tax effect on December 31, 2021 2022 and 2023 3. Record the exercise of the options and their tax effect it all of the options are exercised on August 21, 2025, when the market price Is $25 per share Complete this question by entering your answers in the tabs below. R1 Rag 2 and 3 Record the necessary journal entries on December 31, 2021 2022, and 2023. Assume all of the options are excercised on August 21, 2025, when the market price is $25 per share. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round intermediate calculations and final answers to 1 decimal place. Enter your answers in millions (5,500,000 should be entered as 5.5).) Show less View transaction list Journal entry worksheet 1 2 3 5 7 Record compensation expense on December 31, 2021 Norte debitore credits Gonal Journal December 31 Debt Credit 2001 1 In Supoed JBL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, JBL granted options to key officers on January 1, 2021. The options permit holders to acquire 8 million of the company's Sipar common shares for $20 within the next six years, but not before January 1, 2024 (the vesting date). The market price of the shares on the date of grant is $24 per share. The fair value of the 8 million options, estimated by an appropriate option pricing model , is $6 per option. Because the plan does not qualify as an incentive plan, JBL will receive a tax deduction upon exercise of the options equal to the excess of the market price at exercise over the exercise price. The tax rate is 25% Required: 1. Determine the total compensation cost pertaining to the incentive stock option plan. 2. Prepare the appropriate journal entries to record compensation expense and its tax effect on December 31, 2021, 2022 and 2023, 3. Record the exercise of the options and their tax effect if all of the options are exercised on August 21, 2025, when the market price is $25 per share eBook Print Complete this question by entering your answers in the tabs below. References Req 1 Reg 2 and 3 Determine the total compensation cost pertaining to the incentive stock option plan. (Enter your answer in millions (ie, 10,000,000 should be entered as 10).) Total compensation cost million Reg 2 and 3 > JBL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, JBL granted options to key officers on January 1, 2021. The options permit holders to acquire 8 million of the company's St par common shares for $20 within the next six years, but not before January 1, 2024 (the vesting date). The market price of the shares on the date of grant is $24 per share. The fair value of the 8 million options, estimated by an appropriate option pricing model, is $6 per option. Because the plan does not qualify as an incentive plan, JBL will receive a tax deduction upon exercise of the options equal to the excess of the market price at exercise over the exercise price. The tax rate is 25% Required: 1. Determine the total compensation cost pertaining to the incentive stock option plan. 2. Prepare the appropriate journal entries to record compensation expense and its tax effect on December 31, 2021 2022 and 2023. 3. Record the exercise of the options and their tax effect if all of the options are exercised on August 21, 2025. when the market price is S25 per share Complete this question by entering your answers in the tabs below. ses Reg 1 Reg 2 and 3 Record the necessary journal entries on December 31, 2021, 2022, and 2023. Assume all of the options are exercised on August 21, 2025, when the market price is $25 per share. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round Intermediate calculations and final answers to 1 decimal place. Enter your answers in millions (.., 5,500,000 should be entered as 5.5).) Show less View transaction list Journal entry worksheet
