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Breeland Company grants 3.0 million performance stock options to key executives at January 1, 2024. The options entitle executives to receive 3.0 million of LCI
| Breeland Company grants 3.0 million performance stock options to key executives at January 1, 2024. | |||
| The options entitle executives to receive 3.0 million of LCI $1 par common shares, subject to the achievement of specific financial goals over the next four years. | |||
| Attainment of these goals is considered probable initially and throughout the service period. The options have a current fair value of $8 per option. | |||
| Required: | PLEASE SHOW WORK | ||
| 1. Prepare the appropriate entry when the options are awarded on January 1, 2024. | |||
| 2. Prepare the appropriate entries on December 31 of each year 2024 and 2025. | |||
| 3. Suppose at the beginning of 2026, LCI decided it is not probable that the performance objectives will be met. Prepare the appropriate entries on December 31 of 2026 and 2027. | |||
| If no journal entry is required, state this. Amounts may be rounded to millions. | |||
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