Fraud Financial began granting stock options to its top executives in 2020. The exercise price on these options is $35 per share. At the date of grant, the stock price was $20 per share, the end of the year price was $18 per share and the average for the year was $16. The options vest over 5 years and the estimated value using the Black Scholes Pricing model is $3,450,000. Prepare any journal entries relevant to the year 2020 for Fraud Financial. Fraud Financial has a calendar fiscal year.