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Swifty Company adopted a stock-option plan on November 30, 2016, that provided that 67,700 shares of $5 par value stock be designated as available for

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Swifty Company adopted a stock-option plan on November 30, 2016, that provided that 67,700 shares of $5 par value stock be designated as available for the granting of options to officers of the corporation at a price of $9 a share. The market price was $12 a share on November 30, 2017. On January 2, 2017, options to purchase 28,600 shares were granted to president Tom Winter--14,900 for services to be rendered in 2017 and 13,700 for services to be rendered in 2018. Also on that date, options to purchase 14,600 shares were granted to vice president Michelle Bennett-7,300 for services to be rendered in 2017 and 7,300 for services to be rendered in 2018. The market price of the stock was $14 a share on January 2, 2017. The options were exercisable for a period of one year following the year in which the services were rendered. The fair value of the options on the grant date was $4 per option. In 2018, neither the president nor the vice president exercised their options because the market price of the stock was below the exercise price. The market price of the stock was $8 a share on December 31, 2018, when the options for 2017 services lapsed. On December 31, 2019, both president Winter and vice president Bennett exercised their options for 13,700 and 7,300 shares, respectively, when the market price was $16 a share. Prepare the necessary journal entries in 2016 when the stock-option plan was adopted, in 2017 when options were granted, in 2018 when options lapsed, and in 2019 when options were exercised. (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 Date Account Titles and Explanation Debit Credit Date Account Titles and Explanation Debit Credit (To record options granted to president.) (To record compensation expense attributable to 2017.) (To record compensation expense attributable to 2018.) (To record lapse of president's and vice president's options.) Dec 31, 2019

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