Question 32 (1 point) Hendricks Inc. granted their executives incentive stock options on January 1, 2023. On this date, 275,000 shares of the company's $5 par value common stock were granted at an option price of $40 per share. On the grant date, the market price of the stock was $50 per share. Market prices of the stock were as follows: December 31, 2024 $70 per share December 31, 2025 $82 per share The Black-Scholes option pricing model determines total compensation expense to be $1,500,000. The service period for the options is 2 years. The options were exercisable beginning on January 1, 2025 for employees still working at Hendricks. The options expire on December 31, 2029. On June 1, 2025, 110,000 options were exercised and the market price on this date was $75. What amount should be debited to Paid-in Capital - Stock Options? a) $375,000 b) $750,000 c) $600,000 d) $0.0 Question 33 (1 point) Bryant Co. has 715,000 shares of common stock authorized to issue and 218,000 shares of common stock issued and outstanding during the year. On October 1, 2023, the company's board of directors declared a cash dividend of $3.25 per share to common stockholders on record as of October 15, 2023. The company made the cash payment on October 31, 2023. On October 31, 2023 the company's journal entry should include a debit to a) Dividends Payable for $2,323,750 b) Retained Earnings for $708,500 c) Dividends Payable for $708,500 d) Retained Earnings for $2,323,750 Question 34 (1 point) Franchise fees should be recognized a) on the date the franchise is opened for business. b) when performance obligations are satisfied. c) on the date the contract was signed. d) on the date the franchise fee is paid to franchisor. Question 35 (1 point) On December 31, 2021, Dynasite Company sells equipment to Gray Inc. for $124,600. Dynasite includes a 1-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2021. Dynasite estimates the prices to be $122,000 for the equipment and $2,600 for the cost of the warranty. In addition to the assurance warranty, Dynasite sold an extended warranty (service type warranty) for an additional 2 years (2023-2024) for $2,800. The entry for Dynasite on December 31, 2021 includes a a) credit to unearned revenue for $2,600. b) credit to cash for $124,600. c) credit to unearned warranty revenue for $2,800 d) credit to sales revenue for $127,400