E16.13 (LO3) (Issuance, Exercise, and Expiration of Share Options) On January 1, 2018, Tsang Ltd. granted 10,000 options to key executives. Each option allows the executive to purchase one share of Tsang&qpos;s HK \( \$ 5 \) par value ordinary shares at a price of HK \( \$ 20 \) per share. The options were exercisable within a 2-year period beginning January 1,2020 , if the grantee is still employed by the company at the time of the exercise. On the grant date, Tsang&qpos;s shares were trading at HK\$25 per share, and a fair value option-pricing model determines total compensation to be HK\$450,000.
On May 1, 2020, 9,000 options were exercised when the market price of Tsang&qpos;s shares were HK \( \$ 30 \) per share. The remaining options lapsed in 2022 because executives decided not to exercise their options.
Instructions
Prepare the necessary journal entries related to the share-option plan for the years 2018 through \( 2022 . \)

E16.13 (LO3) (Issuance, Exercise, and Expiration of Share Options) On January 1, 2018, Tsang Ltd. granted 10,000 options to key executives. Each option allows the executive to purchase one share of Tsang's HK\$5 par value ordinary shares at a price of HK\$20 per share. The options were exercisable within a 2-year period beginning January 1,2020, if the grantee is still employed by the company at the time of the exercise. On the grant date, Tsang's shares were trading at HK\$25 per share, and a fair value option-pricing model determines total compensation to be HK\$450,000. On May 1, 2020, 9,000 options were exercised when the market price of Tsang's shares were HK $\$ 30$ per share. The remaining options lapsed in 2022 because executives decided not to exercise their options. Instructions Prepare the necessary journal entries related to the share-option plan for the years 2018 through 2022.