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Check my work m. On January 1, 2021, Farmer Fabrication issued stock options for 320,000 shares to a division manager. The options have an estimated fair value of $8 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 4% in three years. Suppose that Farmer initially estimates that it is not probable the goal will be achieved, but then after one year, Farmer estimates that it is probable that divisional revenue will increase by 4% by the end of 2023. 1.25 points Required: Print 1. What is the revised estimate of the total compensation? 2. What action will be taken to account for the options in 2022? 3. Prepare the journal entries to record compensation expense in 2022 and 2023. References Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 What is the revised estimate of the total compensation and what action will be taken to account for the options in 2022? 1. Estimate total compensation 2. What action will be taken to account for the options in 2022? $ 2,560,000 Farmer will reflect the cumulative effect on compensation in 2022 earnings. Req 1 and 2 Req3 Prepare the journal entries to record compensation expense in 2022 and 2023. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) View transaction list View Journal entry worksheet No Date Debit Credit 1 2022 General Journal Compensation expense Paid-in capital - stock options 2 2023 Compensation expense Paid-in capital - stock options