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On Jan 1, 2021, Epistemology Inc. granted 500,000 options to its executive team. Each option allows the executive to purchase one common share at $100. The options are exercisable for three years, starting on Jan 1, 2024, if the executive is still employed at Ontology Inc.
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Problem 1: Prepare all necessary journal entries.
Compute net cash flow from operating activities using the direct method. Prepare a statement of cash flows using the indirect method.
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