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Question 3 (6 Points): Taggart Mobility issued 800,000 executive stock options permitting executives to buy 800,000 shares of stock for $25. The vesting schedule states that 10% of the shares will vest in 2017, 35% of the shares will vest in 2018, and 55% of the shares will vest in 2019, The value of the options that vest over the 3-year period is estimated at January 1, 2016, by separating the total award into three groups (or tranches) according to the year in which they vest. The fair value of the options is estimated as $9 for the options that vest in 2017, $6 for the options that vest in 2018, and $4 for the options that vest in 2019. The fair value of the stock price is estimated to be $27 for 2017, $30 for 2018, and $35 for 2019. Allocate the total compensation expense over the three-year vesting period