On October $15,2023,$ the board of directors of Martinez Materials Corporation approved a stock option plan for key executives. On January $1,2024,30$ million stock options were granted, exercisable for $30$ million shares of Martinez's $$1$ par common stock.

The options are exercisable between January $1,2027,$ and December $31,2029,$ at $80\%$ of the quoted market price on January $1.2024,$ which was $$15.$

The fair value of the $30$ million options, estimated by an appropriate option pricing model, is $$5$ per option.

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

Ten percent $(3$ 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 $$33$ 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 $2028.$

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Req $3$ and $5$N