In order to align the company's interest with the employee's interest, Anastasia Limited (Anastasia) introduced a share-based remuneration scheme to grant share options to each of its 100 senior employees, conditional on the employee remaining in the company's employ during the 3-year vesting period. Terms of scheme are summarized below: Grant Date: January 1, 2019 Vesting Date: December 31, 2021 Criterion: Share option, entitle the holder to acquire 1 share ($2 par) with exercise price of $15, will be granted to each grantee. The number of share options granted depend on the following situation: 16,000, if company's earnings have increased by more than 20% averaged across the 3-year period 8,000, if company's earnings have increased by more than 10% averaged across the 3-year period 5,000, otherwise At grant date, the share options have a fair value of $9 each and the estimated forfeiture rate is 10% over 3 years. By the end of 2019, Anastasia's earnings have increased by only 6% and no employees have left. The company expects that earnings will continue to increase at a similar rate in the next two years and the estimate of the forfeiture rate will reduce to 8%. (a) Determine the remuneration expense for 2019 and prepare necessary journal entries for 2019. Anastasia's earnings have increased by 18% in the year 2020, and Anastasia expects that earnings will continue to increase at a similar rate in the year 2021. Five senior employees left during the year 2020 and Anastasia expects that another five senior employees will leave during the year 2021. Finally, Anastasia's earnings have increased by 17% in the year 2021. And another four senior employees left during the year 2021. (b) Determine the remuneration expense for 2020 and 2021. Prepare necessary journal entries for 2020 and 2021. Show how this share-based remuneration scheme is reported in Anastasia's financial statement for 2021. (c) The predicted turnover rate of senior employees is much higher than expected. Assuming on January 1, 2021, Anastasia announced the reduction of the exercise pri option to $10.5 in order to increases the attractiveness of the scheme to the senior employees. Based on the share option pricing model, the fair value of the modified share option is higher than the original one by $4.5 each on January 1, 2021. Determine the changes that may have to your answer in part (b). (d) (Continue with part c) On January 1, 2022, the share price of Anastasia is $26 per share. All senior employees exercised their granted share option on that day. Prepare necessary journal entries for it