SSG Cycles manufactures and distributes motorcycle parts and supplies. Employees are offered a varlety of share-based compensation plans. Under its nonquallfied stock option plan, SSG granted options to key officers on January 1, 2024. - The options permit holders to acquire 12 million of the company's $1 par common shares for $11 within the next sIx years, but not before January 1, 2027 (the vesting date). - The market price of the shares on the date of grant is $13 per share. - The fair value of the 12 million options, estimated by an approprlate option pricing model, is $3 per option. Requlred: 1. Determine the total compensation cost pertaining to the incentlve stock option plan. 2. \& 3. Prepare the approprlate Journal entrles to record compensation expense on December 31, 2024, 2025, and 2026. Record the exercise of the options if all of the options are exercised on May 11, 2028, when the market price is $14 per share. Complete this question by entering your answers in the tabs below. Prepare the appropriate journal entries to record compensation expense on December 31, 2024, 2025, and 2026. Record the exercise of the options if all of the options are exercised on May 11, 2028, when the market price is $14 per share. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Journal entry worksheet 4 Record compensation expense on December 31, 2024. Note: Enter debits before credits. SSG Cycles manufactures and distributes motorcycle parts and supplies. Employees are offered a varlety of share-based compensation plans. Under its nonquallfied stock option plan, SSG granted options to key officers on January 1, 2024. - The options permit holders to acquire 12 million of the company's $1 par common shares for $11 within the next sIx years, but not before January 1, 2027 (the vesting date). - The market price of the shares on the date of grant is $13 per share. - The fair value of the 12 million options, estimated by an approprlate option pricing model, is $3 per option. Requlred: 1. Determine the total compensation cost pertaining to the incentlve stock option plan. 2. \& 3. Prepare the approprlate Journal entrles to record compensation expense on December 31, 2024, 2025, and 2026. Record the exercise of the options if all of the options are exercised on May 11, 2028, when the market price is $14 per share. Complete this question by entering your answers in the tabs below. Prepare the appropriate journal entries to record compensation expense on December 31, 2024, 2025, and 2026. Record the exercise of the options if all of the options are exercised on May 11, 2028, when the market price is $14 per share. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Journal entry worksheet 4 Record compensation expense on December 31, 2024. Note: Enter debits before credits
