SSG Cydes manufactures and distributes motorcycle parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock opton plan, SSG granted options to key officers on Jamuary 1, 2024: - The options permit holders to acquire 7 million of the company's $1 par common shares for $27 within the next sbx years, but not before January 1, 2027 (the vesting date). - The market price of the shares on the date of grent is $29 per share. - The fair value of the 7 milion options, estimated by an appropalate option pricing model, is 58.10 per option. Required: 1. Determine the total compensation cost pertaining to the incentive stock option plan. 2. \& 3. Prepare the appropriate joumal entries to record compensation expense on December 31, 2024, 2025, and 2026. Record the exerclse of the options if all of the options are exercised on May 11, 2028, when the market price is $30 per share