Yuki Ferguson Cosmetics compensates its key employees by offering stock options as part of total compensation. On January 1 of the current year, Yuki Ferguson granted 18,000 options to acquire 18,000 shares of its $4.00 par value common stock at an exercise price of $16 per share. The market price on the date of the grant also $16 per share, so there is no intrinsic value. At the grant date, the fair value of the options is $432,000 or $24 per option. The initial vesting probability is assumed to be 100%. The option plan qualities as a liability classified award. Each executive is required to complete a 2-year service period in order to exercise the options. The fair value of the options does not change over the vesting period. Read the requirements Requirement a. Assuming no changes in vesting probability, prepare the journal entries required to record compensation expense over the vesting period. (Record debits first, then credits. Exclude explanations from any journal entries.) First, record the journal entry for Year 1. Account December 31, Year 1 Choose from any list or enter any number in the input fields and then click Check Answer Check Answer Clear All 5 5 remaining parts