Connors Company has 70 executives to whom it grants compensatory share options on January 1, 2016. The plan grants each executive options to acquire a maximum of 100 shares of the companys $5 par common stock at $50 per share after completing 3 years of continuous service. However, the number of options that vest depends on the increase in the companys market share over the 3-year period. The following schedule shows the number of options granted to each executive based on the increase in market share by the end of the service period:

	Number of
Increase in	Share Options
Market Share	Granted
0 to 4%	40
5 to 8%	60
More than 8%	100

Based on past trends, on the grant date, Connors predicts that its market share will increase about 3% by the end of 2018. At the end of 2017, due to its improved market position over the previous 2 years, Connors revises this estimate to 7%. At the end of 2018, Connors determines that its market share has increased 9% over the 3-year period.

On the grant date, Connors estimates that (1) the fair value of each option is $16.25, and (2) its employee turnover rate will be 9% over the service period. At the end of 2017, because of increased resignations, Connors changes its estimated turnover rate to 12% for the service period. At the end of 2018, 59 executives vest in the plan. On January 17, 2019, 30 executives exercise their options when the stock is selling for $68 per share.

Required:

1.	Prepare a schedule of Connorss compensation computations for its compensatory share option plan for 2016 through 2018.
2.	Prepare Connorss memorandum entry on the date of grant and journal entries for 2016 through 2019 in regard to this plan.
3.	Show how the account(s) related to the plan is (are) reported in the shareholders equity section of Connorss balance sheet on December 31, 2017.