On January 1, 2017, Teal Corporation granted 4,500 options to executives. Each option entitles the holder to purchase one share of Teals $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $70 per share on the date of grant. The fair value of the options at the grant date is $150,000. The period of benefit is 2 years. Prepare Teals journal entries for January 1, 2017, and December 31, 2017 and 2018.

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