Question 16 O pts 3. Prepare the necessary entries for the following events using the fair value method (20 points) On 14 20 the stockholders granted stock options to each of five executives to purchase 30,000 shares of common sto at $40 per share. The par value is $10 per share. 2. The options were non-transferable and the executive had to remain an employee of the company to exercise the option. The options become vested on 1/1/2023. It is assumed that the options were for services performed equally in 2021 and 2022. The Black-Scholes option pricing model determines total compensation expense to be $3,260,000 3. At 2/1/23, four executives exercised their options. The fifth executive chose not to exercise his options, which therefore were expired. Edit View Insert Format Tools Table 12pt Paragraph av Tv D