Walters Audio Visual Inc. offers an incentive stock option plan to its regional managers. On January 1, 2021, options were granted for 60 million $1 par common shares. The exercise price is the market price on the grant date-$10 per share. Options cannot be exercised prior to January 1, 2023, and expire December 31, 2027. The fair value of the 60 million options, estimated by an appropriate option pricing model is $1 per option Required: 1. Determine the total compensation cost pertaining to the incentive stock option plan. 2. to 5. Prepare the appropriate journal entries to record compensation expense on December 31, 2021 and 2022. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2023, when the market price is $11 per share and the entry on December 31, 2027, when the remaining options that have vested expire without being exercised, No Date General Journal 1 Debit Credit December 31, 202 Compensation expense Paid-in capital - stock options 20 20 2 December 31, 202 Compensation expense Paid-in capital - stock options 20 20 X 3 March 12, 2023 Cash Paid-in capital - stock options Common stock Pald-in capital - excess of par >IS 450 45 60 435 4 15 December 31, 202 Pald-in capital - stock options Paid-in capital - expiration of stock options 15