On January 1, 2019, Pepin Company adopts a compensatory share option plan for its 50 executives. The plan allows each executive to purchase 200 shares of its $2 par common stock for $30 per share after completing a 3-year service period. Pepin estimates the value of each option to be $14 on the grant date, and the company expects that 15% of the options will be forfeited and uses this rate in its compensation cost calculations in 2019. At the end of 2021, Pepin determined that the actual turnover was 7 executives for the entire service period. On January 6, 2022, 8 executives exercise their options.

Required:
1. Prepare a schedule of Pepin’s compensation computations for its compensatory share option plan for 2019 through 2021 (round all computations to the nearest dollar).
2. Prepare Pepin’s memorandum entry on the grant date and journal entries for 2019 through 2022 in regard to this plan.