On January $1,2023,$ Blaine Corporation granted $6,000$ options to executives. Each option entitles the holder to purchase one share of Blaine$’$s common shares at $$35$ per share at any time after January $1,2025.$ The shares$’$ market price is $$50$ per share on the date of grant, and the required service period is two years.

Prepare Blaine$’$s journal entries for January $1,2023,$ and December $31,2023$ and $2024.$ Assume that the options$’$ fair value as calculated using an options pricing model is $$126,000.$ Ignore forfeitures for simplification purposes.  

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To address the requirements of this question we need to account for the granting of stock options to ... View the full answer