On November 1, 2014, Olympic Company adopted a stock-option plan that granted options to key executives to purchase 53,000 shares of the companys $12 par value common stock. The options were granted on January 2, 2015, 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 $40, and the fair value option-pricing model determines the total compensation expense to be $847,500. All of the options were exercised during the year 2017: 39,750 on January 3 when the market price was $68, and 13,250 on May 1 when the market price was $78 a share. Prepare journal entries relating to the stock-option plan for the years 2015, 2016, and 2017. Assume that the employee performs services equally in 2015 and 2016