Prepare Oriole journal entries for January

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Problem - On January 1, 2020, Oriole Corporation granted 6,100 options to executives. Each option entitles the holder to purchase one share of Oriole's common shares at $28 per share at any time after January 1, 2022. The shares' market price is $42 per share on the date of grant, and the required service period is two years.

Required - Prepare Oriole's journal entries for January 1, 2020, and December 31, 2020 and 2021. Assume that the options' fair value as calculated using an options pricing model is $116,000. Ignore forfeitures for simplification purposes.

Reference no: EM132684716

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