On January 1, 2014, Blaine Corporation granted 4,000 options to executives. Each option entitles the holder to purchase one share of Blaine's common shares at $40 per share at any time after January 1, 2016. The shares' market price is $55 per share on the date of grant, and the required service period is two years. Prepare Blaine's journal entries for January 1, 2014, and December 31, 2014, and 2015. Assume that the options' fair value as calculated using an options pricing model is $106,000. Ignore forfeitures for simplification purposes.