Several years ago, the Johnson Co. granted options on 5,000 shares of its common stock. The fair market value of each option on the grant date was $3 per share. The exercise price is $2. The tax rate (all years) is 20%. The options are exercised at the end of the current year. At the beginning of the current year "Paid-in capital tax effect of stock options" had a credit balance of $10,000.

1. What is the ending balance of Paid-in capital tax effect of stock options if the fair market value of the stock on the exercise date was $3 per share ( See textbook p. 1134-5 Case b. )?

2. What is the balance of Paid-in capital tax effect of stock options at the end of the current year if the fair market value of Johnson's stock on the exercise date was $11 per share (textbook Case a. )?

3. What is the ending Paid-in capital tax effect of stock options, if the market price of the stock on the exercise date is $5.