How much compensation expense would be recorded in each of Years 1 to 5? (Do not round intermediate calculations. Enter recoveries (if any) with a minus sign.) End of Year 20X3 20X4 20X5 20X6 20X7 

Employees expected to remain until vesting36 (60%)34 (57%)32 (53%)31 (52%)n/a 

Employees expected to forfeit24 (40%)26 (43%)28 (47%)29 (48%)n/a 

Employees actually forfeiting in the year 04200 

Employees actually receiving options (60 − 28) 54 (90%) 

1 Record the entry for annual compensation expense. 

2 Record the entry for annual compensation expense. 

3 Record the entry for annual compensation expense. 

4 Record the entry for annual compensation expense. 

5 Record the entry for annual compensation expense. 

6 Record the entry for exercising the stock options. 

7 Record the entry for lapse the stock options.

Answer rating: 100% (QA)

To calculate the compensation expense for each year we first need to calculate the total number of o... View the full answer