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On November 1, 2012 Olympic Company Inc. adopted a stock-option plan that would grant 10 of its employees 100,000 stock options each for the company's $1 par value common stock. The options were granted on January 1, 2013 and would vest after four years of service and expire 8 years from the date of the grant. The exercise price is $50 per share. Using an option pricing model, the Company determined that the fair value of the options on the grant date was $25 and traded for $50 per share on that date as well.
Two years later on January 1, 2015, the Company wanted to provide additional incentive to the employees for the third and fourth years of service by revising the terms of the award. The exercise price was lowered to $40 per share. Using an option pricing model, management determined that the fair-value-based measure of the awards was $24 after the revision and $18 before the revision. No other terms of the award was affected.
All of the options were exercised during the year 2017. 300,000 options were exercised on January 15, 2015 when the market price was $75 and 700,000 when the market price was $80 a share.
Prepare all of the journal entries that Olympic Company relating to each year of the service period?

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