with explanation please

Problem II, (20 Points). Prepare the necectary entries from 1/1/30-2/122 for the following events ssing the fair value method. If no entry is needed, write "No Entry Necesmy." 1. On 1/1/20, the stockholdens adopted a stock option plan for top cxecutives whereby cach might receive righlis to purchase up to 30,000 shares of common stock at $40 per sture. The par value is $10 per share, 2. On 2/1/20, ontions were granted to each of five executives to parchase 30,000 thares. The eptions were non-transferable and the executive had to remain an emplayee of the company to exercie the option. The options expire on 2/4/22. Is is assumed that the optiens werc for wemices performed equally in 2020 and 2021 . The Black-Scholes option pricing model determiser total compersatice expense to be 53,200,000. 3. At 2/1/22, four executives exereived tbeir options. The fift cuccutive chove not to excreice his optiono, which therefore were forfeited. Record the option cuercoce and the option forfeiture in weparate joamal entries. 11120 No entry