On Jan 2003, Ford granted incentive stock options to its senior management exercisable for 1.5 million common shares. The common stock has a $1 par value. The options must be exercised within 5 yrs but not before Jan 1, 2005 (vesting period 2 yrs.) The exercise price of the stock options is $45. An option pricing model estimates the fair value of the option to be $4 per option. On Jan 1, 2006 - 800,000 of the stock options are exercised. On Jan 1, 2008, the remaining 700,000 stock options expire without being exercised. Record the entries on the following dates as necessary:

a) 1/1/2003

b) 12/31/2003

c) 12/31/2004

d) 1/1/2005

e) 1/1/2008