Wolmore Resources Ltd. is authorized to issue unlimited numbers of common shares, of which 40,500,000 have been issued at an average price of $22 per share. On 1 January 20X3, when shares were trading for $30 per share, the company granted stock options to each of its 42 senior executives. The stock options provide that each individual will be eligible to purchase, no earlier than 31 December 20X7, 3,000 common shares at a base option price of $30 per share. The options are nontransferable, vest on 31 December 20X7, and expire on 31 December 20X8. Option pricing models indicate that the options have a total value of $480,000. Estimates of retention are: End of Year Employees expected to remain until vesting Employees expected to forfeit Employees actually forfeiting in the year Employees actually receiving options (42 - 7) 20X3 32 (76%) 10 (24%) 20X4 30 (71%) 12 (29%) 20X5 35 (83%) 7 (17%) 20X6 34 (81%) 20X7 n/a 8 (19%) n/a 0 5 2 0 0 35 Twenty-five individuals who received the options exercised on 31 December 20X7, when the share price was $54. The remaining individuals did not exercise the options. The share price fell to $24 in 20X8, and the remaining options lapsed. Required: 1. Prepare the entries to record the granting of the options, annual expense, exercise, and lapse. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate values. Round your final answers to the nearest whole dollar. Use the rounded % in the table except for 20X7. Use the exact calculation in 20X7.) View transaction list Record the entry for annual compensation expense. 7 Record the entry for annual compensation expense. Record the entry for annual compensation expense. Record the entry for annual compensation expense. Record the entry for annual compensation expense. Record the entry for exercising the stock options. Credit Record the entry for lapse the stock options