Princeton Inc

Essay

Princeton Inc.granted 290,000 stock options to its employees.The options expire 45 years after the grant date of January 1,2011,when the share price was $23.Employees still employed by the company four years after the grant date may exercise the option to purchase shares at $45 each; that is,the options vest to the employees after five years.A consultant estimated the value of each option at the date of grant to be $2.50 each.
Requirement:
Record the journal entries relating to the issuance of stock options.