On January $2,$ Year $1,$ Gracie Corp. granted compensatory stock options exercisable beginning January $2,$ Year $3,$ to purchase $100,000$ shares of $$2$ par common stock for $$6$ per share. Using an acceptable valuation model, the options had a total fair value of $$150,000.$ For the situations below, complete the following journal entries for each specific date, assuming all the options were exercised on January $2,$ Year $3.$

To prepare each required journal entry:

Click on a cell in the Account Name column and select the appropriate account. An account may be used once or not at all for a journal entry.

Enter the corresponding debit or credit amount in the associated column.

All amounts will be automatically rounded to the nearest dollar.

Not all rows in the table might be needed to complete each journal entry.

If no journal entry is needed, check the $"$No Entry Required" box at the top of the table as your response.

$1.$ Record compensatory stock options at grant date.

$2.$ Record compensation expense for the year ended December $31,$ Year $1.$

$3.$ Record compensation expense for the year ended December $31,$ Year $2.$

$4.$ Record exercise of options at January $2,$ Year $3.$