Suggested a Options I- FV of Question 1 On January 1, 2018, Magilla Inc. granted...
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Suggested a Options I- FV of Question 1 On January 1, 2018, Magilla Inc. granted stock options to officers and key employees for the purchase of 20,000 shares of the company's $10 par common stock at S25 per share. The options Service were exercisable within 3-year period beginning January 1, 2020, by grantees still employed by periad the company, and expiring December 31, 2016. The service period for this award is 2 years. Assume that the fair value option pricing model determines the total fair value of the options to be Exercise S400,000 (or $20 per option). On April 1, 2019, 3,000 options were terminated when the employees resigned from the company. The market price of the common stock was S35 per share on this date. On March 31, 2020, 14,000 shares were exercised when the market price of the common stock was-$40 per sh Required: Preparetheappropriatejournal entriesduring January 1 : 2018 through March 31, 2020. share
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