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On November 1, 2011, Olympic Company adopted a stock option plan that granted options to key executives to purchase 57,200 shares of the company's $14

On November 1, 2011, Olympic Company adopted a stock option plan that granted options to key executives to purchase 57,200 shares of the company's $14 par value common stock. The options were granted on January 2, 2012, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $57, and the fair value option pricing model determines the total compensation expense to be $858,000. All of the options were exercised during the year 2014: 42,900 on January 3 when the market price was $96, and 14,300 on May 1 when the market price was $110 a share How much compensation expense is recognized on 1/2/12? Prepare journal entries relating to the stock-option plan for the years 2012, 2013, and 2014. Assume that the employee performs services equally in 2012 and 2013

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