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TR15-8 Share-Based Compensation; Equity-Settled (LO 15-6) Darling Petrol Corp. granted stock options to executives in early 20X1. The stock options vest over five years

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TR15-8 Share-Based Compensation; Equity-Settled (LO 15-6) Darling Petrol Corp. granted stock options to executives in early 20X1. The stock options vest over five years and expire after eight years. In total, the options allow the purchase of 2,300,000 shares at $2.50 per share. Option pricing models indicate that the options I have a total fair value of $8,050,000. Estimates of retention are 84% at the end of 20X1 and 82% at the end of 20X2. Required: 1. Provide the journal entries to be recorded with respect to the options at the end of 20X1 and 20X2. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list

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