25,000 is the correct entry to record compensation expenses for the year 2021.
The total value of options is $75,000 (75,000 x $1).
The vesting period is 3 years, so the expense to be recorded each year is $75,000/ 3 = $25,000
So, journal entry for the year 2021,
Dr. Compensation Expense 25,000
Cr Additional paid-in capital - Stock options 25,000.
(To record compensation expense for the year 2021)
Compensation Expenses means all expenses and costs associated with compensation and benefits provided to Consulting Staff. This includes, but is not limited to, salaries, bonuses, mortgages, pension benefits, premiums, and other benefits, benefits, or other compensation provided to consulting staff.
Learn more about Compensation Expenses at
https://brainly.com/question/15800524
#SPJ4
