Cambridge Inc. is a new technology start up. It has decided plan for its executive management team, since it does not believe it will ha available cash on hand for year-end bonuses. The plan was implemented on July 1, 20X3, and provides participants with the right to purchase up to 4,000 common shares at $30 per share. The current fair value of the shares is estimated at $26.50 share. Options for the maximum number of shares allowed under the plan was granted to three members of the executive management team on September 15, 20X3, for services performed in 20X3. The options have an expiry date of January 31, 20X4. The compensation expense was estimated at $270,000 based on an appropriate option pricing model. Only two of the executives exercised their options in January prior to the deadline. per Required: Document key dates and record all of Cambridge's

required entries to properly account for the stock option plan