On January 1, 2025. Novak Corporation granted 4,500 options to executives. Each option entitles the holder to purchase one share of Novak's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $62 per share on the date of grant. The fair value of the options at the grant date is $157,000. The period of benefit is 2 years. Prepare Novak's journal entries for January 1, 2025, and December 31, 2025 and 2026. (List all debit entries before credit entries. 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. Record journal entries in the order presented in the problem.)