Cardinal Corporation adopted a stock option plan granting 16,000 options to key executives. Each option allows the executive to purchase one share of Cardinal's $2 par value common stock at a price of $32 per share. Additional information follows: The stock option plan was created on January 1, 2019. A fair value option-pricing model determines total compensation to be $720,000. . The options were granted to the executives on January 1, 2020. At this date the fair value of the common stock was $40 per share. The options can be exercised beginning January 1, 2023. . The stock option plan expires December 31,12025. On June 1, 2023, 12,000 options were exercised. At this date the fair value of the common stock was $42 per share. Please prepare the necessary journal entries for compensation expense (9 points) and the exercise of the options (9 points). For credit please show computations. Date Debit Credit