Problem
Wilco Inc. grants 10,000 options to their executives on January 1, 2022 that allows for the purchase shares of Wilco stock for $50 per share after a 5-year vesting period. The fair value of the options on January 1 is determined to be $5 per option. What is the amount of total compensation expense and what is the amount that Wilco would recognize on December 31, 2022?