Question 14 Under its executive stock option plan, Grey Corporation granted options on January 1, 2016, that permit executives to purchase 50,000 of the company's 12 per common shares within the next six years, but not before December 31, 2018 (the vesting data). The exercise price is the market price of the shares on the date of grants are The fair value of the options, estimated by an appropriate option pricing model is 33 per option. No forfentures are anticipated Answer the following questions and explain your calculations a. Under this plan, what is the annual compensation expense that would be recognized b. If 70% of the options are exercised, how many shares are the executives purchasing and how much cash will the company receive for those shares? c. Prepare the appropriate journal entry to record the exercise of 70% of the options on March 12, 2019, when the market price is $15 per share d. Prepare the appropriate journal entry on December 31, 2022, when the remaining options that have vested expire without being exercised Label your answers a-d and be sure to explain your answers to a) and b). Answers without an explanation will be counted wrong. The explanation can be to show me how you derived at your answer. Label your Dr and Crand use the proper JE format (separate lines for each Dr and Ch. to answer c) March 12, 2019 and d) December 31, 2022 journal entries. For the toolbar, press ALT+F10 Por ALT-INF10 M) B TUS Paragraph Arial TE 14px TXQ AM 2 F * 1 EB 99 + 53 X X 32 - MacBook Air 11 DOO 80 004 FT & $ 4 %23 3 % 5 9 8 7 6 2 0 L A Moving to another question will save this response Question 16 The FASB's 1993 exposure draft on stock options proposed that the estimated value of stock options should be O 1. capitalized. 2. expensed 3. Ignored. 4. disclosed. > A Moving to another question will save this response. MacBook Air OOO OOO FA 5 80 F3 F2 SC $ 4 # 3 % 5 6 7 2 T Y