On January 3, Turkey Ltd. purchases a call option for $200 from Peacock Corp. to buy 1,000 Quail Inc. shares at an exercise price of $42 per share. The option expires May 1. At this time the current market price of Quail shares is also $42. On March 31 (Turkey’s year end), the market value of the Quail shares is $53, and the fair value of the option has increased to $14,000. On April 15, Turkey takes delivery of (buys) the Quail shares as agreed in the option contract. The market value of Quail’s shares is now $54. Instructions (show any calculations) a. Calculate the intrinsic value and the time value of this option at 1. January 3 2 March 31 b. Prepare general journal entries for the following dates: 1. January 3 2. March 31 3. April 15