Rambling Man, Inc. has a stock-option plan for top management. Each stock option represents the right to purchase a share of Rambling Man $1 par value common stock in the future at a price equal to the fair value of the stock at he date of the grant. On January 1, 2018, Rambling Man issued the following options:

Number of options granted

55,000

Market price of stock at grant date

42

Fair value of options at grant date

7

Service period

5

years

Options expire at the end of December, 2025.

During 2020, several executives terminated their employment with the company and forfeited their options, as follows:

Forfeitures experienced due to employee departures

18%

In 2024, the percentage of remaining options were exercised by the executives was:

75%

Required:

1.

Record the journal entry in 2024 when the options were exercised.