Recording Performance Based Stock Options Through a performance share option plan, Anderson Inc. granted executives and other key employees share option awards where vesting is contingent upon meeting company-wide performance goals, including decreasing time for a new product launch and specified sales targets. The options vest over a three-year period (considered the requisite service period) and expire in 6 years. The company granted 7,000 options on January 1 of Year 1, for the purchase of 7,000 shares at $30 per share. The company estimates the fair value of the options to be $3 per share based upon an option-pricing model. On January 1 of Year 1, management believed it was probable that the company would achieve the specified performance targets defined in the performance share option plan. However, in Year 2, management's view changed in that it now does not believe that it is probable that the company will achieve the specified performance targets defined in the performance share option plan. Record any entry required in Year 2 based upon the estimate change. Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero)