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Sunland Corp., a public company, adopted a stock option plan on November $30,2023,$ that designated $70,000$

common shares as available for the granting of options to officers of the corporation at an exercise price of $$7$ a

share. The market value was $$11$ a share on November $30,2023.$

On January $2,2024,$ options to purchase $30,000$ shares were granted to the president, Don Pedro: $17,500$ for

services to be rendered in $2024,$ and $12,500$ for services to be rendered in $2025.$ Also on that date, options to

purchase $16,000$ shares were granted to the vice$-$president, Beatrice Leonato: $8,000$ for services to be

rendered in $2024,$ and $8,000$ for services to be rendered in $2025.$ The shares' market value was $$13$ a share on

January $2,2024.$ The options were exercisable for a period of one year following the year in which the services

were rendered. On January $2,2024,$ the value of the options was estimated at $$400,000.$

In $2025,$ neither the president nor the vice$-$president exercised their options because the shares' market price

was below the exercise price. The shares' market value was $$6$ a share on December $31,2025,$ when the options

for $2024$ services lapsed.

On December $31,2026,$ both the president and vice$-$president exercised their options for $12,500$ and $8,000$

shares, respectively, when the market price was $$15$ a share. The company's year end is December $31.$

Prepare the necessary journal entries in $2023$ when the stock option plan was adopted, in $2024$ when the

options were granted, in $2025$ when the options lapsed, and in $2026$ when the options were exercised. $($Credit

account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in

the order presented in the problem. If no entry is required, select $"$No Entry" for the account titles and enter O for the

amounts. Do not round intermediate calculations. Round answers to $0$ decimal places, e$.$g$.5,275.$ List all debit entries

before credit entries.$)$

Please, prepare the journal entries with the right dates, account titles and show workings

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