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On January 1, 2021, Farmer Fabrication issued stock options for 180,000 shares to a division...

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Accounting

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On January 1, 2021, Farmer Fabrication issued stock options for 180,000 shares to a division manager. The options have an estimated fair value of $3 each. To provide additional incentive for managerial achievement, the options are not exercisable unless Farmer Fabrication's stock price increases by 4% in three years. Farmer initially estimates that it is not probable the goal will be achieved. How much compensation will be recorded in 2021, 2022, and 2023? Compensation each year

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