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In order to provide employees with additional incentives, Brink Company implemented a fixed stock option plan for certain executives of the company. Options to buy
In order to provide employees with additional incentives, Brink Company implemented a fixed stock option plan for certain executives of the company. Options to buy common stock were granted as follows: Date Employee 1/1/2017 Art Wilson 1/1/2018 Brian Varnival 1/1/2019 Sally Pepper # of Shares 80,000 45,000 25,000 Exercise Price $30 $38 $43 Price of Shares at Date of Grant $32 $41 $47 Option Value at Date of Grant $91 $10 $11 Options are nontransferable and can be exercised beginning three years after the date of grant. The employee must remain an employee of the company. Options were exercised as follows: Stock of the company has a $1 par value. The accounting period for the company is the calendar year. Price of Shares at Date of Date Employee 12/31/2020 Art Wilson 12/31/2021 Brian Varnival 12/31/2022 Sally Pepper # of Shares 80,000 45,000 25,000 Exercise $48 $43 $49 Provide all entries that would be made on the books of Muir relative to the stock option plan for the period 2017 to 2022 inclusive. December 31, 2017 Account Debit Credit December 31, 2018 Account Debit Credit December 31, 2019 Account Debit Credit Call Option Exercise: December 31, 2020 Account Debit Credit December 31, 2020 Account Debit Credit December 31, 2021 Account Debit Credit Varnival option Exercise December 31, 2021 Account Debit Credit Pepper Option Exercise December 31, 2022 Account Debit Credit
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