1) Walker, Incorporated uses stock options as a compensation incentive for its top executives. On January I, Year 1, 25,000 options were granted, each giving the holder the right to acquire four $5 par common shares. The exercise price is $15 per share. Options vest on January 1, Year 5 and cannot be exercised before that date and will expire on December 31, Year 8. The fair value of the 25,000 options, estimated by an appropriate option pricing model is $50 per option. Required: Make the journal entries to record the granting of the options and the compensation for Year 1. (15 points)