Question 2 (6 points) Avnet Corporation started the following executive compensation plans in 2019: Plan A allows the executives to purchase shares of Avnet Corporation for $20 in 5 years. The options are non-transferable, must be held for 5 years and expire in 7 years. On December 31, 2019 the fair value of the stock options, based on an option pricing model, was $240,000. The compensation expense recorded in 2019 for this plan was correctly computed to be $40,000. On December 31, 2020 the fair value of the stock options, based on an option pricing model, was $210,000. The retention rate among senior executives in 2019 was estimated to be 80%. Plan B allows the executive to receive a cash payment equal to the difference between the share price in 4 years in comparison to the reference price established on January 2, 2019. The estimated fair value of the payout on December 31, 2019 was $300,000. Consequently the compensation expense recorded for 2019 was correctly computed to be $60,000. On December 31, 2020 the fair value of the payout was computed to be $420,000. The retention rate among senior executives in 2020 was estimated to be 72%. Required: 1. Prepare the journal entry for Plan A on December 31, 2020 (year-end). (3 Marks) 2. Prepare the journal entry for Plan B on December 31, 2020 (year-end). (3 Marks) Format BI U