ed uses stock options as a compensation incentive for shares. The 1) Walker, Incorporat its top executives. On January 1, Year 1, 25,000 options were granted oach giving the holder the right to acquire four $5 par common exercise price is $15 per share. Options vest on January 1, Year 5 and oannot be exercised before that date and will expire on December 31, Year tne fair value of the 25,000 options, estimated by an appropriate option pricing model is $50 of Walker's stock was $20 per share, 15,000 of the options were exenc Required: , Year 7, when the market price sed per option. On April 1 Make the appropriate journal entry to record the exercise of the options. nakwe: Intermed