On 1 January 2019 XYZ plc granted 5 directors options to purchase 5,000 shares in the entity. The options vest on 31 December 2021 for those directors who remain employed by the entity until that date, and the company must achieve an average increase in profit of at least 8% per year for the year ending 2021. The options allow the directors to purchase the share for $20 per share. The market price and the fair value of the company share were $10 and $6 on 1 January 2019, respectively. All directors remained in the company at the end of 2021. At the 31 December 2020, the company estimated that they would achieve the profit targets (they said 80% sure) and by 31 December 2021 the profit target had been achieved. Required: Show the accounting entries required in the years ending 31 December 2020, and 2021. [25 marks]