Mount Ltd grants 50 share options to each of its 250 employees. Each grant is conditional upon the employee working with the company for the next two years. Mount Ltd estimates that the fair value of each share option at grant date is $10.00.

Mount Ltd makes the following estimates of the percentage of employees expected to leave during the two-year vesting period:

Estimate at grant date: 10%

Estimate at end of Year 1: 8%

By the end of Year 2, 15 employees had actually left before the end of the two-year vesting period.

Required

Prepare:

1. the journal entry to record employee benefits expense at the end of Year 1.
2. the journal entry to record employee benefits expense at the end of Year 2.