O Magic Enterprises (OME) provides an executive stock option plan. Under the plan, the company granted options on January 1,2021 , that permit executives to acquire 800,000 of the company's \$1 par value common shares within the next five years, but not before December 31,2023 (the vesting date). The exercise price is the market price of the shares on the date of the grant, $14 per share. The fair value of the options, estimated by an appropriate model, is $3 per option. At the date of grant, OME anticipated that 5% of the recipients would leave the firm prior to vesting. During 2022 second year, OME revised its estimate of forfeitures from 5% to 10% Ignore taxes.. Required (in Good Form) (Using the working papers provided): 1. Prepare the appropriate journal entry to record compensation expense on December 31, 2021, 2022, and 2023. (Show computations as parentheticals under each entry). 2. Prepare the appropriate journal entry to record the use of half the options for the purchase of shares at January 5, 2024. 3. Prepare the partial 2022 income statement and balance sheet for OME