29. On January 1, 2020, Vesper Company granted several executives stock options that allowed the executives to purchase 24 million of Vesper's $1 par value common stock. The vesting period was four years. The fair value of each option was $5 and the exercise price was $14 per share. No forfeitures were anticipated and none occurred. The options were exercised on January 15, 2024 when the stock was trading at $22 per share. Which journal entry shown below correctly records the exercise of the options? (Journal entry amounts are shown in millions) a. Cash 96 PIC - stock options 120 Common stock, $1 par PIC - excess of par b. Cash Compensation expense Common stock, $1 par PIC - excess of par C. Cash PIC - stock options Common stock, $1 par PIC - excess of par d. Cash Compensation expense PIC - stock options PIC - excess of par 336 120 30. On January 1, 2019 Lynd Company granted 150,000 stock options to certain employees. There is a three-year vesting period. The exercise price of the options is $25 and the fair value of each option is estimated to be $10. Lynd's policy is to account for forfeitures as they occur. No forfeitures occurred during 2019 but several employees quit during 2020, resulting in forfeiture of 20% of the options. What amount of stock option compensation expense should Lynd recognize during 2020? a. $500,000 b. $300,000 C. $700,000 d. $450,000 31. Prior years' financial statements are usually not restated as a part of the a. prospective approach b. indirect approach C. retrospective approach d. current approach e. None of these answers are correct