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$($To record compensation expense attrrbutable to $2025$

$-20,000$ options.$)$

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$($To record lapse of president's and vice$-$president's

optlons to buy $23,000$ shares.$)$Sandhill Corp., a public company, adopted a stock option plan on November $30,2023,$ that designated $70,000$ common shares as

available for the granting of options to officers of the corporation at an exercise price of $$9$ a share. The market value was $$13$ a share

on November $30,2023.$

On January $2,2024,$ options to purchase $26,000$ shares were granted to the president, Don Pedro: $14,500$ for services to be rendered

in $2024,$ and $11,500$ for services to be rendered in $2025.$ Also on that date, options to purchase $17,000$ shares were granted to the

vice$-$president, Beatrice Leonato: $8,500$ for services to be rendered in $2024,$ and $8,500$ for services to be rendered in $2025.$ The shares'

market value was $$15$ a share on January $2,2024.$ The options were exercisable for a period of one year following the year in which the

services were rendered. On January $2,2024,$ the value of the options was estimated at $$400,000.$

In $2025,$ neither the president nor the vice$-$president exercised their options because the shares' market price was below the exercise

price. The shares' market value was $$8$ a share on December $31,2025,$ when the options for $2024$ services lapsed.

On December $31,2026,$ both the president and vice$-$president exercised their options for $11,500$ and $8,500$ shares, respectively, when

the market price was $$17$ a share. The company's year end is December $31.$

Prepare the necessary journal entries in $2023$ when the stock option plan was adopted, in $2024$ when the options were granted, in

$2025$ when the options lapsed, and in $2026$ when the options were exercised. $($Credit account titles are automatically indented when the

amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select $"$No Entry"

for the account titles and enter $0$ for the amounts. Do not round intermediate calculations. Round answers to $0$ decimal places, e$.$g$.5,275.$ List

all debit entries before credit entries.$)$