1. Rutter Inc. granted (see below for #) stock options to executives and employees on January 1, 2017. The options have a strike price is $10 per share and expire in 2019. The par value of the common stock is $ Using an option pricing model, the company calculates a fair value of $20 per share. The expected service period, or benefit period, is (see below) years.

1. Prepare the journal entries for 2017 and 2018.

2. In 2019, (see below) % of the options are exercised and the remaining options expire.

Last Name # of options granted_ service period % exercised_______

A D 200,000 2 years 20%

E K 300,000 3 years 30%

L S 250,000 2 years 40%

T Z 500,000 3 years 50%