On 1st November, 2011, Olympic Company adopted a stock option plan that granted options to key executives to purchase 57,200 shares of the company's $14 par value common stock. The options were granted on 2nd January, 2012, and were exercisable two years after the date of grant if the grantee was still an employee of the corporation. The options expired six years from date of grant. The option price was set at $57, and the fair value option pricing model evaluates the total compensation expense to be $858,000.
All of the options were exercised in the year 2014: 42,900 on 3rd January when the market price was $96, and 14,300 on May 1 when the market price was $110 a share
Evaluate compensation expense is recognized on 1/2/12?
Organize journal entries relating to the stock-option plan for the years 2012, 2013, and 2014. Consider that the employee performs services equally in 2012 and 2013