1. On January 1, 2018, T&Z Company granted 100,000 options to each of its 10 executives (1,000,000 options in total). Each option allows the executive to purchase one T&Z common shares at a set price of $10. The option is exercisable in three years time (January 1, 202, if the executive is still employee with the company. On the grant date the market value of T&Zs common shares was $7.50, and the fair value of the options compensation was calculated to be $2,250,000. The option expires on January 1, 2023.

On June 1, 2019, two executives retired, and their corresponding options were terminated. On January 1, 2021, 250,000 options were exercised. The market price of a T&Z common share on that day was $13. On June 12, 2022, 200,000 options were exercised. The market price of a T&Z common share on that day was $12. No other options were exercised before the expiry date.

Required: Prepare ALL journal entries associated with the above Compensation Stock Option