Recording Stock Options: Issuance and Exercise Rex Corporation is authorized to issue 450,000 shares of common stock, $1 par, of which 210,000 shares had been issued. The corporation initiated a stock bonus plan during 2020 for designated managers. Under the plan, options vest with the grantee if still employed by the company two years from the date of grant. The rights are nontransferable and expire immediately after December 31, 2024. The exercise price is $20 per share. Assume that manager Ruth Roe receives stock options on January 1, 2020, to purchase 1,500 shares of Rex common stock. The market price of Rex common stock on the date of grant was $24 per share. Using an option-pricing model, the fair value of the options granted to Roe is computed to be $12 per option. Required a. Compute the total amount of compensation cost for the grant made to Roe. $ 0 b. What entry should be made on the date of the grant? c. What entry should be made on December 31, 2020? d. Provide the entry to record the exercise of the options held by Roe on December 31, 2024, when the stock of Rex Corporation was trading at $35 per share. Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Dr. Cr. 0 0 0 0 0 Date Account Name b. Jan. 1, 2020 N/A N/A Dec 31, 2020 Compensation Expense Paid-in Capital-Stock Options d. Dec. 31, 2024 Cash Paid-in Capital - Stock Options Common Stock Paid-in Capital in Excess of Par-Common Stock 0 0 0 . 0 0 0 0 0 0 0 0