Journalize the following:

On January 1, 2018 Richard Corporation granted 4,800 options to its officers. Each option entitles the holder to purchase one share of Richards $5 par value common stock at $40 per share at any time during the next 5 years. The market price of the stock is $68 per share on the date of grant. The fair value of the option on the date of grant in $164,000. The period of benefit is 2 years.

Prepare the journal entry when all options are exercised within the 5-year time limit.