On January 1, 2020, Pronghorn Corporation granted 4,600 options to executives. Each option entitles the holder to purchase one share of Pronghorns $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $69 per share on the date of grant. The fair value of the options at the grant date is $161,000. The period of benefit is 2 years. Prepare Pronghorns journal entries for January 1, 2020, and December 31, 2020 and 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Brief Exercise 16-06 Your answer is partially correct. Try again. On January 1, 2020, Pronghorn Corporation granted 4,600 options to executives. Each option entitles the holder to purchase one share of Pronghorn'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 $69 per share on the date of grant. The fair value of the options at the grant date is $161,000. The period of benefit is 2 years. Prepare Pronghorn's journal entries for January 1, 2020, and December 31, 2020 and 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit Date 71/1/20 No Entry T No Entry 12/31/20 71 T12/31/21