Stock Option Plan Data Sheet

*Approved at the January 2020 Board meeting

*About 500,000 options granted to Willams senior executives, the options may be converted into 500,000 common shares after they vest

*Fair value of 1,250,000 determined by an options pricing model

*Exercise price set at $12.50 per share (market price at the grant date $12.50) three year vesting period starting January 1, 2020 (the options are than exercisable for two years - January 1, 2023 to December 31, 2024)

*The fair value of $1,250,000 includes an estimate that over the service period approximately 10% of option holders would leave the company before the the options vested (3.33% per year)

*Average market price of common shares during 2020 was $14.00

Please show the relating calculations and journal entries followed by CSOPs