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Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2021, that permit execut

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Answer #1

Compensation expense for 2021 = 12000000*$2*1/3 = $8000000

Compensation expense for 2022 = 12000000*95%*$2%*2/3 - 8000000 = $7200000

Compensation expense for 2023 = 12000000*95%*$2*3/3 - (8000000+7200000)

= $7600000

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