Walters Audio Visual Inc. offers an incentive stock option plan to its regional managers. On January 1, 2016, options were granted for 4 million $1 par common shares. The exercise price is the market price on the grant date$5 per share. Options cannot be exercised prior to January 1, 2018, and expire December 31, 2022. The fair value of the 4 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. (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).)

National Supply's shareholders' equity included the following accounts at December 31, 2015 Shareholders' Equity (Smillions) Common stock, 5 million shares at $1 par 5,000,000 Paid-in capital-excess of par Retained earnings 30,000,000 98,500,000 Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. (lf no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) February 15, 2016 February 17, 2017 November 9, 2018 Reacquired 480,000 shares at $9 per share. Reacquired 480,000 shares at $6.50 per share. Sold 335,000 shares at $8 per share (assume FIFO cost) View transaction list View journal entry worksheet