Darling Petrol Corp. granted stock options to executives in early 20X1. The stock options vest over five years and expire after eight years. In total, the options allow the purchase of 1,200,000 shares at $2.00 per share. Option pricing models indicate that the options have a total fair value of $4,200,000. Estimates of retention are 82% at the end of 20X1 and 80% at the end of 20X2. Required: 1. Provide the journal entries to be recorded with respect to the options at the end of 20X1 and 20X2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet < 2 Record the entry for annual compensation expense. Note: Enter debits before credits. Year 20X1 General Journal Debit Credit > 2. What would the balance be in the equity account for stock options at the end of the fifth year if retention remained at 80%? (Do not round intermediate calculations.) Balance in Contributed capital: stock rights outstanding 3. Assume that actual retention was 80%, and the options were exercised at the end of the sixth year when the market price of common shares is $29. Provide the entry for exercise. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet < 1 Record the entry for issue of share. Note: Enter debits before credits. Year 20X6 General Journal Debit Credit 4.Assume that retention was 80% but the options were allowed to lapse after eight years when the price of common shares is $1.25. Provide the entry for the lapse. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet < 1 Record the entry for lapse of options issued. Note: Enter debits before credits. Year 20X8 Record entry General Journal Clear entry Debit Credit View general journal >