On January 1, 2019, Nichols Corporation granted 10,000 options to key executives. Each option allows the executive to purchase one share of Nichols' \$5 par value common stock at a price of $20 per share. The options were exercisable within a 2year period beginning January 1, 2021, if the grantee is still employed by the company at the time of the exercise. On the grant date, Nichols' stock was trading at $25 per share, and a fair value option-pricing model determines total compensation to be $400,000. On May 1, 2021, 8,000 options were exercised when the market price of Nichols' stock was $30 per share. The remaining 2,000 options lapsed on January 1, 2023-1,500 because the executive failed to fulfil an obligation of the employment contract and 500 because executives decided not to exercise their options. Instructions Prepare the necessary journal entries related to the stock option plan for the years 2019 through 2023. On January 1, 2019, Nichols Corporation granted 10,000 options to key executives. Each option allows the executive to purchase one share of Nichols' \$5 par value common stock at a price of $20 per share. The options were exercisable within a 2year period beginning January 1, 2021, if the grantee is still employed by the company at the time of the exercise. On the grant date, Nichols' stock was trading at $25 per share, and a fair value option-pricing model determines total compensation to be $400,000. On May 1, 2021, 8,000 options were exercised when the market price of Nichols' stock was $30 per share. The remaining 2,000 options lapsed on January 1, 2023-1,500 because the executive failed to fulfil an obligation of the employment contract and 500 because executives decided not to exercise their options. Instructions Prepare the necessary journal entries related to the stock option plan for the years 2019 through 2023