On Jan. 1st 2012, Revlon inc granted 5M of its $1 par common shares and 5 million stock options to purchase 5M common shares at $72 per share to division managers. The granted shares and options are subject to forfetier if employment in terminated within 5 years. The market price of the firms common stock is $22.50 per share on the grant date. An approporiate option pricing model determines that the value of each stock option is $2.

What journal entry should Revlon record on Dec 31 2012?