Acct 301 Ch - 16 Extra Employee Stock Option Compensation Expense Problem 5 points On January 1, 2021 Columbo Company adopted an employee stock option plan and granted on that day options to key employees that allow them to purchase 30,000 share of the company's $5 par value common stock. The options are exercisable 2 years after this grant date if the employees are still working for the company. The options expire 6 years after they become first exercisable. The option price is set at $40 per share. A run of the Black-Scholes Option Pricing Model on January 1, 2021 estimates that the "Total" Fair Value of each option is $55 per share. The company reran the model on December 31, 2022 just as the service period was ending and found the total fair value on that day for each option was $100 per share. 10,000 of the options (1/3 of them) were exercised on May 1, 2023. The market price of Columbo's Stock on Wall Street was $150 per share on that day. A. Compute the amount of Compensation Expense Columbo would record in 2021., 2022, and 2023 Show the appropriate Journal Entries. B. Prepare the entry on May 1, 2023 when 10,000 of the options were exercised