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Question - On January 1, 2020, Metlock Corporation granted 4,800 options to executives. Each option entitles the holder to purchase one share of Metlock's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $68 per share on the date of grant. The fair value of the options at the grant date is $164,000. The period of benefit is 2 years.
Required - Prepare Metlock's journal entries for January 1, 2020, and December 31, 2020 and 2021.
Based on this information alone, what is the amount of net income earned during the month of July?
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