Required information On January 1, 2021, a company granted 55,000 incentive stock options to executives. Each option provides the right to purchase one share of the company's $1 par common stock for $11 each. The options become exercisable on January 1, 2025 and expire on December 31, 2027. Each option had a fair value of $2 on grant date. Assume no forfeitures. On May 2, 2026, when the stock price was $15, executives exercised 70% of the options. Use the information above to answer the questions below. The journal entry for exercise of 70% of the options (on May 2, 2026) includes an increase in Cash of: (Click to select) $605,000 $423,500 $148,500 $577,500 $462,000