Breezy Lodge Issued 25,000 At-The-Money Stock Options to Its Management

question 8

Essay

Breezy Lodge issued 25,000 at-the-money stock options to its management on January 1,2012.These options vest on January 1,2015.Breezy's share price was $18 on the grant date and $25 on the vesting date.Estimates of the fair value of the options showed that they were worth $4 on the grant date and $11 on the vesting date.On the vesting date,management exercised all 24,000 options.Breezy has a December 31 year-end.
Requirement:
Record all of the journal entries relating to the stock options.

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Definitions:

Anthropological Definition

The definition pertaining to anthropology, which is the study of humans, human behavior, and societies in the past and present.

Simultaneously

Occurring, operating, or done at the same time; concurrent events or processes.

Polyandry

A marriage form in which a woman is married to two or more men at one time; a form of polygamy.

Kinship Chart

A visual representation used in anthropology and social sciences to display family relationships and lineage connections among members of a society.