Brief Exercise 19-9 Performance-based options (LO19-2] On January 1, 2018, Farmer Fabrication issued stock options for 380,000 shares to a division manager. The options have an estimated fair value of $9 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 3% in five years. Suppose that after one year, Farmer estimates that it is not probable that divisional revenue will increase by 3% in five years. 1. What is the revised estimate of the total compensation? 2. What action will be taken to account for the options in 2019? Answer is complete but not entirely correct. Estimated total compensation What action will be taken to account for the options in 20192 3.420,000 Farmer will reverse the 2018 recorded compensation