Problem 19-4 Stock options; graded vesting: IFRS [LO19-2, 19-14] Pestner Brands is a colendar-year firm with operations in several countries. As part of its executive compensation plan, at January 1. 018, the company issued 276,000 executive stock options permitting executives to buy 276,000 shares of Pestner stock for $41 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 Amount Fair Value DateVesting per Option Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 25% 25% 25% 25% $4.00 $5.00 $6.80 $7.00 Assume Pastner prepares its financial statements using International Financial Reporting Standards. Required: 1. Determine the compensation expense related to the options to be recorded each year 2018-2021, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately (Enter your answers in thousands.) Compensation Expense Recorded in: 2020 Shares Vesting at: Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 2018 2021 Total 2019 0.00 0.00 0.00 0.00 0.00 0.00$ 0.00 S 000 S 0.00 S Total