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Breezy Lodge issued 25,000 at-the-money stock options to its management on January 1, 2021. These options vest on January 1, 2024. Breezy s share price

Breezy Lodge issued 25,000 at-the-money stock options to its management on January 1, 2021. These options vest on January 1, 2024. Breezy’ s share price was $18 on the grant date and $25 on the vesting date. Estimates of the fair value of the options showed that they were worth $4 on the grant date and $11 on the vesting date. On the vesting date, management exercised all 25,000 options. Breezy has a December 31 year-end.

1.Record December 31, 2021 through 2023 entry
2.Record the exercise of all 25,000 options.

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