Please Introduction and explanation also prepare journal entry then no plagiarism please i humble request On January 1, 2021, Marigold Inc. granted stock options to officers and key employees for the purchase of 18,000 shares of thecompany's $10 par common stock at $23 per share. The options were exercisable within a 5-year period beginning January 1, 2023, bygrantees still in the employ of the company, and expiring December 31, 2027. The service period for this award is 2 years. Assume thatthe fair value option-pricing model determines total compensation expense to be $368,000.On April 1, 2022, 1,800 options were terminated when the employees resigned from the company. The market price of the commonstock was $34 per share on this date.On March 31, 2023, 10,800 options were exercised when the market price of the common stock was $42 per share.Prepare journal entries to record issuance of the stock options, termination of the stock options, exercise of the stock options, andcharges to compensation expense, for the years ended December 31, 2021, 2022, and 2023. (Credit account titles are automaticallyindented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for theamounts.)DateAccount Titles and ExplanationDebitCredit

A stock option gives a right to the option holder (investor) to exercise an option of buying or…

On January 1, 2021, Marigold Inc. granted stock options to officers and key employees for the purchase of 18,000 shares of the company's $10 par common stock at $23 per share. The options were exercisable within a 5-year period beginning January 1, 2023, by grantees still in the employ of the company, and expiring December 31, 2027. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $368,000.

On January 1, 2021, Marigold Inc. granted stock options to officers and key employees for the purchase of 18,000 shares of the company's $10 par common stock at $23 per share. The options were exercisable within a 5-year period beginning January 1, 2023, by grantees still in the employ of the company, and expiring December 31, 2027. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $368,000.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter15: Shareholders’ Equity: Capital Contributions And Distributions

Section: Chapter Questions

Problem 29P

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