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Big Tech Entity (BTE) Grants Five Senior Employees 20,000 Share

Question 21

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Big Tech Entity (BTE) grants five senior employees 20,000 share options (4,000 options each) on January 4, 20X7, to acquire shares of the entity for a fixed amount, that vest on the grant date. The board of shareholders approved these awards on February 1. BTE determined that each option has a fair value equal to $10 on January 4 and $15 on February 1. What is the journal entry recognize share options on the grant date?

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