On January 1, 2020, Holiday Inc. offered a stock option incentive plan to a top executive. The plan provided the executive 240 stock options for Holiday Inc. $1 par value, common stock at an option price of $15 per share through the expiration date of January 1, 2026. The fair value of the options based upon an option-pricing model on January 1, 2020, is $7,200. The market price at year-end of Holiday Inc. stock is $15 per share on January 1, 2020. The requisite service period is 3 years. The executive left the company on January 1, 2022.

Prepare the journal entry required on January 1, 2022, assuming that the companys policy is to record forfeitures as incurred.