Wolters Audio Visual, Incorporated, offers a stock option plan to its regional managers. - On January 1, 2024, 32 million options were granted for 32 million $1 par common shares. - The exercise price is the market price on the grant date, $8 per share. - Options cannot be exercised prior to January 1, 2026, and explre December 31, 2030. - The falr value of the options, estimated by an appropriate option picing model, is $2 per option. - Because the plan does not qualify as an incentive plan, Waiters will recelve a tax deduction upon exercise of the options equal to the excess of the market price at exercise over the exercise price. - The income tax rate is 25% Required: 1. Determine the total compensation cost pertaining to the stock option plan. 2. Prepare the appropriate journal entries to record compensation expense and its tax effect on December 31,2024. 3. Prepare the appropriate journal entries to record compensation expense and its tax effect on December 31,2025 , 4. Record the exercise of the options and their tax effect if all of the options are exercised on March 20, 2029, when the market price is $12 per share. 5. Assume the option plan qualifies as an incentive plan. Prepare the approprlate journal entries to record compensation expense and its tax effect on December 31, 2024. 6. Assuming the option plan qualifies as an incentive plan, record the exercise of the options and their tax effect if all of the options are exerclsed on March 20, 2029, when the market price is $11 per share. Complete this question by entering your answers in the tabs below. Determine the total compensation cost pertaining to the stock option plan. Noter Enter your answer in mililons (ie, 10,000,000 should be entered as 10)