On January 1, 2019, Roswall Corporation’s common stock is selling for $55 per share. On this date, Roswall creates a compensatory share option plan for its 60 key employees. The plan document states that each employee may purchase 500 shares of its $10 par common stock for $55 per share after working for the company for 3 years. On this date, based on an option pricing model, Roswall estimates that each option has a value of $18. Roswall expects that employee turnover rate will be 15% over the service period.
Because of lower turnover, at the end of 2020, Roswall changes its estimated turnover rate to 12% for the entire service period. At the end of 2021, the options vest for 54 employees. On January 13, 2022, 10 executives exercise their options when the stock is selling for $75 per share.

Required:
1. Prepare a schedule of Roswall’s compensation computations for its compensatory share option plan for 2019 through 2021 (round all computations to the nearest dollar).
2. Prepare Roswall’s memorandum entry for the grant date and journal entries for 2019 through 2022 in regard to this plan.
3. Show how the account(s) related to the plan is (are) reported in the shareholders’ equity section of Roswall’s balance sheet on December 31, 2017.