On Jan 1, 2018 key executives In Alicia Corp. were granted share options for services to be rendered over a two-year period commencing Jan 1, 2018. 100,000 options were granted at an option price of $25 per share. The options could be exercised in 2 years commencing Jan 1, 2020. However, they expired in three years on Jan1 2021. The Black-Scholes option pricing model determined total compensation expense to be 800,000. The par value of these shares was $1. The 100,000 options were exercised on Jan 5, 2020.

01. Use the following information to Qia.b.&c. (One mark for w o men n Onan, 2018 tives in Alicia Corp were and share o period comming lan 1. 2018 100.000 tons were a dat berhed in commencing 2020 www.they Otoring model determined totalcomation to be The 100.000 tons were crised on a 5. 2020 for services to be rendered over two year t o price of $25 share the options he was on 2001 The Shoes 0.000. The profesores Provide the prope r ties for the following dates and currences 2. Refer to the information given in gl above to answer 02 a & bone more for a wholy correct answer 2a. Provide journal entries required if on Jan 01, 2021 the options expired because the market price was low, and the executives of Aldadid not exercise them Han 01 2021 2. E in the effect of the option in an ice Carg'income Samant and eachment of the ance Sheet one marrowly crane