Final answer:
To compute the compensation expense Olympic should recognize for 2016, it's necessary to apply accounting standards to the fair value of the stock options granted, amortized over the vesting period. Specific details of the stock plan are needed for an exact calculation.
Step-by-step explanation:
The question regarding how much Olympic should recognize as compensation expense for 2016 pertains to the accounting treatment of stock-based compensation. In order to determine the compensation expense to be recognized, it's essential to understand the accounting standards that apply, such as the Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), and the specific terms of the stock compensation plan. The expense recognized would typically be based on the fair value of the stock options or awards granted to employees, which is then amortized over the vesting period. An example to illustrate this would be a company granting stock options with a fair value of $100,000 that vest evenly over four years, thus resulting in a yearly compensation expense of $25,000. Without additional details on Olympic’s stock compensation plan, a precise figure cannot be provided.