On January 1, 2020,PharoahCorporation granted21,100options to key executives. Each option allows the executive to purchase one share ofPharoah's common shares at a price of $22per share. The options were exercisable within a two-year period beginning January 1, 2022, if the grantee was still employed by the company at the time of the exercise. On the grant date,Pharoah's shares were trading at $18per share, and a fair value options pricing model determined total compensation to be $710,000. Management has assumed that there will be no forfeitures because they do not expect any of the key executives to leave.

On May 1, 2022,6,330options were exercised when the market price ofPharoah's shares was $29per share. The remaining options lapsed in 2023 because executives decided not to exercise them. Management was indeed correct in their assumption regarding forfeitures in that all executives remained with the company. Assume thatPharoahfollows IFRS.

On January 1, 2020, Pharoah Corporation granted 21,100 options to key executives. Each option allows the executive to purchase one share of Pharoah's common shares at a price of $22 per share. The options were exercisable within a two-year period beginning January 1, 2022, if the grantee was still employed by the company at the time of the exercise. On the grant date, Pharoah's shares were trading at $18 per share, and a fair value options pricing model determined total compensation to be $710,000. Management has assumed that there will be no forfeitures because they do not expect any of the key executives to leave. On May 1, 2022, 6,330 options were exercised when the market price of Pharoah's shares was $29 per share. The remaining options lapsed in 2023 because executives decided not to exercise them. Management was indeed correct in their assumption regarding forfeitures in that all executives remained with the company. Assume that Pharoah follows IFRS. Prepare the necessary journal entries related to the stock option plan for the years ended December 31, 2020 through 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 1/1/20 12/31/20 12/31/21\fWould the exercise price no rmally be higher or lower than the market price of the shares. on the date of grant? The market price will normally be ' V| than the exercise price of the shares on the date of grant