The Johnson Co. grants options on 5,000 shares of its common stock. The fair market value of each option on the grant date is $3 per share. The exercise price is $2. The tax rate (all years) is 20%. The options were exercise at the end of the current year. At the beginning of the current year Paid-in capital tax effect of stock options had a credit balance of $10,000.

1. What is the ending balance of Paid-in capital tax effect of stock options if the fair market value of the stock on the exercise date was $3 per share?

2. What is the balance of Paid-in capital tax effect of stock options at the end of the current year if the fair market value of Johnson's stock on the exercise date was $11 per share?

3. What is the ending Paid-in capital tax effect of stock options, if the market price of the stock on the exercise date is $5.