Use the following information to answer questions 2 and 3 2. On January 1, 2014, Sharp Corp. granted employees option to purchase 12,000 shares of Sharp's $5 par value common stock at $20 per share. When grated, it was assumed that all of the employees would at least be employed by Sharp for 5 years. The Black-Scholes option pricing model determines total compensation expense to be $280,000. The option became exercisable on December 31, 2015, after the employee completed two years of service. The market prices of Sharp's stock were as follows: January 1, 2014 December 31, 2015 $30 50 For 2015, how much should Sharp Corp. recognize compensation expense under the fair value method? 3. For problem 3, when the options were granted at the beginning of 2014, it was assumed that some of the employees would not be be employed by Sharp in 2 years. Rather, they assumed a yearly forfeiture rate of 5%. However, at the end of 2015, all employees receiving options were still working for Sharp. For 2015, how much should Sharp Corp. recognize compensation expense under the fair value method?