On January 1, 19A, Corporation B grants options to its single employee to purchase 3,000 shares of its $50 par common stock at $60 per share, beginning January 1, 19D, and ending on December 31, 19F. On the grant date the market price is $80 per share.
(1) What is the measurement date?
(2) How long is the service period?
(3) What is the total compensation cost, if any?
(4) What is the annual compensation cost, if any?
(5) Prepare all the necessary journal entries.