Question: On January 1 , 2 0 2 5 , Oriole Company granted William Brown, an employee, an option to buy 5 0 0 shares of

On January 1,2025, Oriole Company granted William Brown, an employee, an option to buy 500 shares of Oriole Co. stock for $30 per
share, with the option exercisable for 5 years from the date of grant. Using a fair value option pricing model, total compensation
expense is determined to be $5240. Brown exercised his option on September 1,2025, and sold his 500 shares on December 1,2025.
Quoted market prices of Oriole Co. stock during 2025 were:
January 1,$28 per share
September 1$34 per share
December 1$38 per share
T
On January 1,2025, Oriole Company granted William Brown, an employee, an

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