On January 1, 2025, Barwood Corporation granted 5,000 options to executives. Each option entitles the holder to purchase one share of Barwood'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 $65 per share on the date of grant. The fairvalue of the options at the grant date is $150,000.The period of benefit is 2 years.

Prepare Barwood's journal entries for January1,2025, and December 31, 2025 and 2026.

Repeat the requirements assuming that instead of options, Barwood issued 2,000 shares of restricted stock units.