On December 12, 2020, the board of directors approves the stock options for 5 top executives. On January 1, 2021, the company grants each executive 2,000 options. Each option can convert into 1 common stock, par value of $10. The exercise price is $150 per share. The fair value of common stock is $270 per share. The vesting period is 4 years. Executives are unable to exercise this option until December 31, 2024. Also, the executives will not be able to exercise the options after January 1, 2027 (the expiration date of the options). The fair value of all options, estimated by an appropriate option pricing model, is $2,000,000. (The fair value per one option is 2,000,000/(2,000*5) = $200) The information related to the options is as follows. - At the end of 2022, two executives resign. - At the end of 2023, one executive resigns. - January 31, 2025, one executive exercises 1,400 options. Required: 1. Prepare the journal entry to record transaction on December 31, 2021-2026 and January 1, 2027. 2. Prepare Income Statement for the year 2021-2025 and Statement of Financial Position as of December 31, 2021 2027.