Tommi-Boy Jeans, Inc. awarded 4,000 options to acquire 4,000 shares of its preferred stock, which can be sold back to the company. At the grant date, the options have a fair value of $ 12 each and cannot be exercised until employees complete a two-year service period. The market price and the exercise price were both equal to $ 8 per share on the date of the grant. Prepare the journal entry required at the end of the first year after the options are granted. .