Provide the journal entry only for the exercise of stock options. Do not provide the other journal entries. On 1/1/20, the stockholders adopted a stock option plan for top executives whereby each might receive rights to purchase up to 30,000 shares of common stock at $40 per share. The par value is $10 per share. On 2/1/20, options were granted to each of five executives to purchase 30,000 shares. The options expire on 2/1/22. It is assumed that the options were for services performed equally in 2020 and 2021. The Black-Scholes option pricing model determines total compensation expense to be $3,200,000. At 2/1/22, four executives exercised their options.

Provide the journal entry only for the exercise of stock options. Do not provide the other journal entries.
On 1/1/20, the stockholders adopted a stock option plan for top executives whereby each might receive rights to purchase up to 30,000 shares of common stock at $40 per share. The par value is $10 per share. On 2/1/20, options were granted to each of five executives to purchase 30,000 shares. The options expire on 2/1/22. It is assumed that the options were for services performed equally in 2020 and 2021. The Black-Scholes option pricing model determines total compensation expense to be $3,200,000.  At 2/1/22, four executives exercised their options.