On January 1, 2018, 30 employees are granted stock options for 250 common shares each, a total of 7,500 shares, at an option price of $25 per share.The options vest 4 years after the grant date.The options are valued using an option pricing model at $60,000 total.

Forfeiture estimates are updated at the end of each year:

End of Year2018201920202021

Management Estimates

-Employees expected

to remain26 (87%)24 (80%)23 (77%)n.a.

-Expected forfeitures4 (13%)6 (20%)7 (23%)n.a.

Factual History

-Actual forfeitures6120

-Employees receiving options21 (30 - 9)

REQUIRED:Prepare schedule to calculate compensation expense each year and make entries for each year to record it.(9 marks)