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at-the-money stock options to its management c 2026. Windy Lake's share price was $10 on the the fair value of the options showed that they we e. On the vesting date, management exercised all end. gany entry required at December 31, 2023

at-the-money stock options to its management c 2026. Windy Lake's share price was $10 on the the fair value of the options showed that they we e. On the vesting date, management exercised all end. gany entry required at December 31, 2023

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Lake Lodge issued 72,000 at-the-money stock options to its management on January 1, 2023. These options vest on January 1, 2026. Windy Lake's share price was $10 on the grant date and $11 on the vesting date. Estimates of the fair value of the options showed that they were worth $4 on the grant date and $9 on the vesting date. On the vesting date, management exercised all 72,000 options. Windy Lake has a December 31 year-end. a. Begin by preparing any entry required at December 31, 2023 b. Next, prepare any adjusting entry required on December 31, 2024. c. Prepare any adjusting entry required on December 31, 2025 d. Prepare the entry to record the exercise of options on January 1, 2026.
Transcribed Image Text:Lake Lodge issued 72,000 at-the-money stock options to its management on January 1, 2023. These options vest on January 1, 2026. Windy Lake's share price was $10 on the grant date and $11 on the vesting date. Estimates of the fair value of the options showed that they were worth $4 on the grant date and $9 on the vesting date. On the vesting date, management exercised all 72,000 options. Windy Lake has a December 31 year-end. a. Begin by preparing any entry required at December 31, 2023 b. Next, prepare any adjusting entry required on December 31, 2024. c. Prepare any adjusting entry required on December 31, 2025 d. Prepare the entry to record the exercise of options on January 1, 2026.
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