The following events occurred at Charlotte Company surrounding stock options.

Charlotte uses the fair value method of accounting for stock options.

a$.$ On $1/1/22$ options were granted to each of four executives to purchase $5,000$

shares $($a total of $20,000$ shares$)$ of the company$$s $$2$ par value common stock

at a price of $$25.$ The options were non$-$transferable and the executive had to

remain an employee of the company through $12-31-23$ to exercise the options.

The options expire on $2/1/24.$ The Black$-$Scholes option pricing model

determines the fair value of the options to be $$1,570,000.$

b$.$ On $4/5/23,$ one of the four executives resigned from the company.

c$.$ On $2/1/24,$ the remaining three executives exercised their options.

Required:

Prepare any necessary entries for $1/1/22,12/31/22,4/5/23,12/31/23$ and $2/1/24.$

If no entry is necessary, indicate as such.

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