Weaver Industries implements a new share-based compensation plan in 2011. Under the plan, the company's CEO and CFO each will receive non-qualified stock options to purchase 100,000, no par shares. The options vest ratably (1/3 of the options each year) over three years, expire in 10 years , and have an exercise (strike) price of $23 per share. Weaver uses the Black-Scholes model to estimate a fair value per option of $15. The company's tax rate is 35%.

a. Prepare journal entries to record compensation expense for 2011, 2012, 2013. Include the effects of deferred tax benefits.