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On January 1, 2020, granted 5,400 options to executives. Each option entitles the holder to purchase one share of I's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $62 per share on the date of grant. The fair value of the options at the grant date is $143,000. The period of benefit is 2 years. Prepare I's journal entries for January 1, 2020, and December 31, 2020 and 2021. Date ... Account Titles and Explanation Debit Credit

On January 1, 2020, granted 5,400 options to executives. Each option entitles the holder to purchase one share of I's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $62 per share on the date of grant. The fair value of the options at the grant date is $143,000. The period of benefit is 2 years. Prepare I's journal entries for January 1, 2020, and December 31, 2020 and 2021. Date ... Account Titles and Explanation Debit Credit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, granted 5,400 options to executives. Each option entitles the holder to purchase one share of I's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $62 per share on the date of grant. The fair value of the options at the grant date is $143,000. The period of benefit is 2 years. Prepare I's journal entries for January 1, 2020, and December 31, 2020 and 2021. Date > > > Account Titles and Explanation Debit Credit
Transcribed Image Text:On January 1, 2020, granted 5,400 options to executives. Each option entitles the holder to purchase one share of I's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $62 per share on the date of grant. The fair value of the options at the grant date is $143,000. The period of benefit is 2 years. Prepare I's journal entries for January 1, 2020, and December 31, 2020 and 2021. Date > > > Account Titles and Explanation Debit Credit
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