On October $15,2023,$ the board of directors of Martinez Materials Corporation approved a stock option plan for key executives. On January $1,2024,28$ million stock options were granted, exercisable for $28$ million shares of Martinez's $$1$ par common stock.

The options are exercisable between January $1,2027,$ and December $31,2029,$ at $90\%$ of the quoted market price on January $1,2024,$ which was $$10.$

The fair value of the $28$ million options, estimated by an appropriate option pricing model, is $$6$ per option.

Martinez chooses the option to recognize forfeitures only when they occur.

Ten percent $(2\mathrm{.}8$ million$)$ of the options were forfeited when an executive resigned in $2025.$

All other options were exercised on July $12,2028,$ when the stock's price jumped unexpectedly to $$26$ per share.

Required:

When is Martinez's stock option measurement date?

Determine the compensation expense for the stock option plan in $2024.($Ignore taxes.$)$

Prepare the journal entries to reflect the effect of forfeiture of the stock options on Martinez's financial statements for $2025$ and $2026.$

Prepare the journal entry to account for the exercise of the options in $2028.$

Complete this question by entering your answers in the tabs below.

Req $1$ and $2$

Req $3$ and $5$

& $5.$ Prepare the necessary journal entries.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in millions rounded to $1$ decimal place $($I$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$