ABC Company granted a stock option plan to its employees. The plan has $200,000 fair value. The options will become exercisable only if earnings increase by 20% after 5 years. The company initial expectation is that it is not probable that earnings will increase by 20% after 5 years. However in the 3rd year, the company expects that earnings will increase by 20%. Required: Prepare the journal entries necessary in year 1 through 5