On January 1, 2008, ABC Company issued 200,000 stock options to executives in a compensatory stock option plan. Each option allows an executive to buy one share of $5 par value common stock for an exercise price of $25. The current stock price is $25. The options vest over 5 years. The total estimated fair value of the options on January 1 is $2,400,000.
During 2010, one executive left the company and forfeited 40,000 options.
On January 1, 2013, 60,000 options were exercised when the stock price was $30.
Prepare the journal entries related to the stock options for 2008, 2009, 2010, 2011, 2012 and 2013.