Please help me to answer with clear computation the Requirement 1 & 2 of Problem 8-8 only.
Extracted text: value of the stock option is P90 if the exercise price is P180. If the exercise price is the exercise price will be P180. On Jan. 1, 2018, the entity estimated that the fair PROBLEM 8-7 On Jan. 1, 2018, TOMAS COMPANY granted 5,000 common stock options to the CEO, conditional upon the executive's remaining in the entity's employ until the end of 2020. The par value per share is P100 and the exercise price is P240. However, if earnings increase by at least 10% per year over the 3-year period, P240, the fair value of the stock option is P80. The carnings of the company increased over the 3-year period as follows: 2018. .10% 2019.. 2020.. .11% . 3% REQUIRED: Compute the compensation expense for 2018, 2019, and 2020 as a result of the stock options. 2. Prepare journal entries related to the stock options. PROBLEM 8-8 On Jan. 1, 2018, JORGE COMPANY granted 20 stock options to each of the 1,000 employees. Each grant is conditional upon the employee remaining in service for three (3) years. The fair value of the stock option on the date of grant is P120. On Dec. 31, 2018, 40 employees left the entity and 70 more are expected to leave by the end of the vesting period. On Jan. 1, 2019, the company repriced the stock options by lowering the exercise price. As a result, the fair value of the stock options increased by P40. The modification did not change the vesting period. On Dec. 31, 2019, 45 employees left the company and another 60 are expected to leave by the end of the vesting period. On Dec. 31, 2020, 25 employees actually left the company. REQUIRED: 1. Compute compensation expenses for 2018, 2019, and 2020. 2. Prépare journal entries to recognize the compensation expense over the vesting period.