QUESTION $4(8$ MARKS$)$ Carbon Energy Inc. is a new technology start up$.$ It has decided to adopt a stock option plan for its executive management team, since it does not believe it will have available cash on hand for year$-$end bonuses. The plan was implemented on July $1,2023,$ and provides participants with the right to purchase up to $4,000$ common shares at $$30$ per share. The current fair value of the shares is estimated at $$26\mathrm{.}50$ per share. Options for the maximum number of shares allowed under the plan was granted to three members of the executive management team on September $15,2023,$ for services performed in $2023.$ The options have an expiry date of January $31,2024.$ The compensation expense was estimated at $$270,000$ based on an appropriate option pricing model. Only two of the executives exercised their options in January prior to the deadline. REQUIRED Record all of Carbon Energy$$s required entries to properly account for the stock option plan.