On January 1, 2025, Rosewood Corp. purchased a put option on shares of ICM stock. Terms of the contract were as follows:

Number of shares: 100

Strike price: $200 per share

Expiration date: May 31, 2025

Total cost of the option contract: $80

Seller of the option contract: First Investment Bank

On January 1, 2025, ICM stock was trading at $200 per share. The following additional information is known:

On March 31, 2025, the price of ICM stock was $180 per share. A market appraisal indicated that the time value of the option contract was $60.

On May 10, 2025, the price of ICM stock was $185 per share. A market appraisal indicated that the time value of the option contract was $50. On this date, Rosewood settled the option contract.

Required: 1. Prepare the appropriate journal entry or entries related to transactions occurring in January 2025 through March 2025. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Indicate any amounts that Rosewood Corp. would have included in its March 2025 quarterly financial statements related to the option contract. 3. Prepare the appropriate journal entry or entries related to settlement of the option in May 2025. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Prepare the appropriate journal entry or entries related to transactions occurring in January 2025 through March 2025 . (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Jan. 1, 2025: Record purchase of the option contract. March 31, 2025: Provide any journal entry needed to nsic value update the intrinsic value of the option contract. March 31, 2025: Provide any journal entry needed to update the time value of the option contract. Note . = initral entry hac hepn ontered Complete this question by entering your answers in the tabs below. indicate any amounts that Rosewood Corp. would have included in its March 2025 quarterly financial statements related to he option contract. Complete this question by entering your answers in the tabs below. Prepare the appropriate journal entry or entries related to settlement of the option in May 2025 . (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) (1) May 10, 2025: Provide any journal entry needed to update the intrinsic value of the option contract. 2 May 10, 2025: Provide any journal entry needed to update the time value of the option contract. 3 May 10, 2025: Provide the journal entry for settlement of the option contract (assume cash settlement)