On October $15,2023,$ the board of directors of Martinez Materials Corporation approved a stock option plan for key executives. On January $1,2024,32$ million stock options were granted, exercisable for $32$ 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 $$20.$

The fair value of the $32$ million options, estimated by an appropriate option pricing model, is $$3$ per option.

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

Ten percent $(3\mathrm{.}2$ million$)$ of the options were forfeited when an executive resigned in $2025.$

All other options were exercised on July $12,2028,$ when the stock$$s price jumped unexpectedly to $$31$ per share.

Required:

$1.$ When is Martinez$$s stock option measurement date?

$2.$ Determine the compensation expense for the stock option plan in $2024.($Ignore taxes.$)$

$3.$ Prepare the journal entries to reflect the effect of forfeiture of the stock options on Martinez$$s financial statements for $2025$ and $2026.$

$5.$ Prepare the journal entry to account for the exercise of the options in $2028.$