On october 1, 2018, farmer fabrication issued stock options for 200,000 shares to a division manager. the options have an estimated fair value of $6 each. to provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 2% in four years. suppose that farmer initially estimates that it is not probable the goal will be achieved, but then after one year, farmer estimates that it is probable that divisional revenue will increase by 2% by the end of 2020.1. what is the revised estimate of the total compensation? 2. what action will be taken to account for the options in 2019? 3. prepare the journal entries to record compensation expense in 2019 and 2020.

Reynolds corp. factors $400,000 of accounts receivable with mateer finance corporation on a without recourse basis on july 1, 2015. the receivables records are transferred to mateer finance, which will receive the collections. mateer finance assesses a finance charge of 1 ½ percent of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. the transaction is to be recorded as a sale.required: a. prepare the journal entry on july 1, 2015, for reynolds corp. to record the sale of receivables without recourse.b. prepare the journal entry on july 1, 2015, for mateer finance corporation to record the purchase of receivables without recourse— think through this.c. explain the difference between sale of receivables with recourse as oppose to without recourse.