On January 1, 2018, Jack Corp. grants options that permit key executives to acquire 22 million of the companys $1 par common shares within the next 8 years, but not before December 31, 2021 (the vesting date). The exercise price is $27 per share. The fair value of the options, estimated by an appropriate option-pricing model, is $6 per option.

Jack Corp.s policy is to estimate option forfeitures. Originally, a forfeiture rate of 4% was expected. During 2020, the third year, Kevin Corp. revised its estimate of forfeitures from 4% to 6%.

Required: Prepare the appropriate journal entry to record compensation expense, considering expected forfeitures, in each of the following years. Please show all work for full credit.

2018

2019

2020

2021

Please show all work and if you are going to do it in handwriting please be as neat and legible as possible. Thank You!