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B-Boy Jeans, Inc. awarded 2,000 options to acquire 2,000 shares of its common stock. The options have a fair value of $30 each and cannot

B-Boy Jeans, Inc. awarded 2,000 options to acquire 2,000 shares of its common stock. The options have a fair value of $30 each and cannot be exercised until employees complete a 3-year service period. The market price and the exercise price were both equal to $17 per share on the date of the grant. Prepare the journal entry required at the end of the first year after the options are granted.

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