On January 1, 2019, Scooby Corporation granted 10,000 options to key executives. Each option allows the executive to purchase one share of Scooby's $5 par value common stock at a price of $20 per share. The options were exercisable within a 2-year period beginning January 1,2022 , if the grantee is still employed by the company at the time of the exercise. On the grant date, Scooby's stock was trading at \$25 per share, and a fair value option pricing model determines total compensation to be $600,000. Required: 1. Determine the service period. 2. Record the required journal entry at the end of 2019