Stock options were granted to key employees on January 1, 2020. The fair value per option was $10 on the grant date, and a total of 18,000 options were granted. The options vest in equal installments (i.e., graded vesting) over three years: one-third at the end of 2020, one-third at the end of 2021, and one-third at the end of 2022.

For U.S. GAAP purposes, the Controller has asked you to use the straight-line method to recognize compensation expense related to the stock options.

Using the information provided, prepare Carlsons Income Statements for 2021 (in Word or Excel) under IFRS and US GAAP. You are to assume that Carlsons Net Income for IFRS and US GAAP purposes is $8,000,000 before consideration of these items. For each adjustment, you must include a footnote that explains the adjustment and shows the related calculations. Ignore income taxes. All numbers are in U.S. dollars.