3. (15 pts) Johnstown Company granted 10 officers rights to buy 10,000 shares each of common stock $2 par, at $10 per share on May 1, 2017, the grant date. The stock was selling for $8 per share at the time. The rights cannot be exercised until the beginning of 2018 and expire at the end of 2018. Compensation expense is $100,000, covering a period of 2017 and 2018. Record the following: May 1, 2017, the grant date, issue of the rights. Dec. 31, 2017, compensation expense Dr. Cr. Jul. 1, 2018, 90% of the rights were exercised, as the stock climbed to $13 per share. Dec. 31, 2018, 10% of the rights expired.