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On January 1, 2017, Blue Corporation granted 4,600 options to executives. Each option entitles the holder to purchase one share of Blues $5 par value

On January 1, 2017, Blue Corporation granted 4,600 options to executives. Each option entitles the holder to purchase one share of Blues $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $69 per share on the date of grant. The fair value of the options at the grant date is $161,000. The period of benefit is 2 years. Prepare Blues journal entries for January 1, 2017, and December 31, 2017 and 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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