5. (13 Points) On January 1, 2018, Walters Outman Corporation granted 100,000 stock options to its key executives which permit the purchase of one share each of the company's $1 par common shares for $33 per share. The stock options vest on December 31,2020 and are exercisable for a period of two years after vesting. The market price of the shares on the date of grant is $28 per share and a fair value option-pricing model determines total compensation to be $3,000,000. On January 15,2021,80,000 options are exercised when the market price of Walter's common stock was $35 per share. Provide required journal entries and disclosures to record: a. Granting the options on 1/1/2018. b. Year-end entry at 12/31/2018. c. Exercise of the options on 1/15/2021. d. Expiration of remaining options on 1/1/2023