Tesla Motor's disclosure notes for the year ending December 31, 2015, included the following regarding its $0.001 par common stock:
EMPLOYEE STOCK PURCHASE PLAN-Employees are eligible to purchase common stock through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. The purchase price of the shares on each purchase date is equal to 85% of the lower of the fair market value of our common stock on the first and last trading days of each six-month offering period. During the years ended December 31, 2015, 2014 and 2013, 220,571, 163,600 and 518,743 shares were issued under the ESPP for $37.5 million, $28.6 million and $13.8 million, respectively. A total of 3,615,749 shares of common stock have been reserved for issuance under the ESPP, and there were 2,115,851 shares available for issuance under the ESPP as of December 31, 2015.
Required:
Describe the way compensation expense for employee stock purchase plans is recognized. Include in your explanation the journal entry that summarizes employee share purchases for the year ending December 31, 2015.