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On January 2, 2020, Ivanhoe Corporation purchased a call option for $350 on Walter's common...

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Accounting

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On January 2, 2020, Ivanhoe Corporation purchased a call option for $350 on Walter's common shares. The call option gives Ivanhoe the option to buy 1,040 shares of Walter at a strike price of $28 per share any time during the next six months. The market price of a Walter share was $28 on January 2, 2020 (the intrinsic value was therefore $0). On March 31, 2020, the market price for Walter stock was $38 per share, and the fair value of the option was $16.900, (a) Prepare the journal entry to record the purchase of the call option on January 2, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tities and entero for the amounts.) Date Account Titles and Explanation Debit Credit January 2, 2020

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