On January 1, 2020 share options were granted to employees where they can purchase 100,000 ordinary shares of P80 par value at P100 per share. The fair value of the share options on this date was P40 per share. The officers are entitled to the share options only after completing two years of service. The options can be exercised starting January 1, 2022 and shall expire on December 31, 2022. What amount of compensation expense will be recorded on December 31, 2021?

On January 1, 2020 share options were granted to employees where they can purchase 100,000 ordinary shares of P80 par value at P100 per share. The fair value of the share options on this date was P40 per share. The officers are entitled to the share options only after completing two years of service. The options can be exercised starting January 1, 2022 and shall expire on December 31, 2022. What amount of compensation expense will be recorded on December 31, 2021?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 7RE: On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25...

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On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the time-vested restricted share units entitles the CFO to receive one share of Brust common stock if she remains an employee of the company for 4 years. On January 2, 2019, shares of Brusts 1 par value common are trading at 29.50 per share. The company estimates that the CFO will complete all 4 years of required service with the company. Prepare the journal that Brust should make each year to account for the restricted share units.
On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25 executives, with the number of shares based on the yearly increase in sales. At the end of 2019, based on a 10% increase in sales, it expects that each executive will be granted 150 options and that the fair value of an option expected to vest is 15.75. Phoenix expects a turnover rate of 15% over the 3-year service period. Determine the compensation expense for 2019 for this plan.
On January 1, 2020 share options were granted to employees where they can purchase 100,000 ordinary shares of P80 par value at P100 per share. The fair value of the share options on this date was P25 per share. The officers are entitled to the share options only after completing two years of service. The options can be exercised starting January 1, 2022 and shall expire on December 31, 2022. The amount of compensation expense to be reported in 2020 is a. P0 b. P1,250,000 c. P2,500,000 d. P8,000,000 Norie Company leased an asset on a finance lease. The present value of the lease payments total P686,000 and the fair value of the asset is P750,000. The asset has a useful life of 5 years and the lease term is 4 years. The bargain purchase option for the asset at the end of its useful life is nominal and is substantially lower than the value of the asset at that date. Depreciation for the asset is computed using straight line method. How much is the annual…
On January 1, 2020 share options were granted to employees where they can purchase 100,000 ordinary shares of P80 par value at P100 per share. The fair value of the share options on this date was P25 per share. The officers are entitled to the share options only after completing two years of service. The options can be exercised starting January 1, 2022 and shall expire on December 31, 2022. The amount of compensation expense to be reported in 2020 is P0 P1,250,000 P2,500,000 P8,000,000 A Co entered into an agreement to lease office space on 1 April 2019 for a fixed period of five years. As an incentive to encourage the office space to be occupied, a first-year rent-free period was included in the agreement after which A Co is required to pay an annual lease of P360,000. How much lease should be accounted for in the year ended 31 March 2020? P0 P288,000 P360,000 P1,440,000
On january 1 2020 share options were granted to employees where they can purchase 100,000 ordinary shares of P80 par value of P100 per share. The fair value od share options on this date was P25 per share. The officers are entitled to the share options only after completing two years of service. The options could be exercise starting january 1,2022 and shall expire on December 31, 2022. The amount of compensation expense to be reported on 2020 is 0 1,250,000 2,500,000 8,000,000
On January 1, 2020 share options were granted to employees where theycan purchase 100,000 ordinary shares of P80 par value at P100 per share.The fair value of the share options on this date was P25 per share. Theofficers are entitled to the share options only after completing two yearsof service. The options can be exercised starting January 1, 2022 and shallexpire on December 31, 2022. The amount of compensation expense to bereported in 2020 is A. P0B. P1,250,000C. P2,500,000D. P8,000,000
.On January 1, 2019, Kamagong Company granted 100 share options each to 500 employees, conditional upon the employee’s remaining in the entity’s employ during the vesting period. The share options vest at the end of a three-year period. On grant date, each share option has a fair value of P30. The par value per share is P100 and the option price is P120. On December 31, 2020, 30 employees have left and it is expected that on the basis of a weighted average probability, a further 30 employees will leave before the end of the three-year period. On December 31, 2021, only 20 employees actually left and all of the share options are exercised on such date. QUESTIONS What amount should be reported as compensation expense for 2019? what amount should be reported as compensation expense for 2020? What amount should be reported as compensation expense for 2021?
On January 1,2019, an entity granted 100 share options each to 500 employees, conditional upon employees’ remaining in the entity’s employ during the vesting period. The share option vest at the end of three-year period. On grant date, each share option has a fair value of P30. The par value per share is P100 and the option price is P120. On December 31, 2020, 30 employees have left and it is expected that on the basis of a weighted average probability, a further 30 employees will leave before the end of the three-year period. On December 31,2021, only 20 employees actually left and all of the share options are exercised on such date. 1. ) What is the compensation expense for 2019? a. 500,000 b. 250,000 c. 750,000 d. 450,000 2. What sis the compensation expense for 2020? a. 880,000 b. 380,000 c. 440,000 d. 500,000 3. What is the compensation expense for 2021? a. 600,000 b. 880,000 c. 380,000 d. 470,000 4. What amount was credited to share premium when the…
On January 1, 2020, ABC Company granted share options to each of the 300 employees working in the Accounting department. The options price is P90 and the par value is P70 per share.The share options vest at the end of a three-year period provided that the employees remain in the entity’s employ and provided the volume of sales will increase by 10% per year.The fair value of each share option on grant date is P35.The share will vest as follows: If the sales increase by 10%, each employee will receive 200 share options; If the sales increase by 15%, each employee will receive 300 share options.· On December 31, 2020, the sales increased by 10%, and no employees have left the entity· On December 31, 2021, sales increased by 15% and no employees have left.On December 31, 2022, the sales increased by 15% and 50 employees left the entityWhat is the share premium upon exercise of the share options on December 31, 2022?
On January 1, 2020, ABC Company granted share options to each of the 300 employees working in the Accounting department. The options price is P90 and the par value is P70 per share.The share options vest at the end of a three-year period provided that the employees remain in the entity’s employ and provided the volume of sales will increase by 10% per year. The fair value of each share option on grant date is P35. The share will vest as follows: If the sales increase by 10%, each employee will receive 200 share options; If the sales increase by 15%, each employee will receive 300 share options. · On December 31, 2020, the sales increased by 10%, and no employees have left the entity· On December 31, 2021, sales increased by 15% and no employees have left.On December 31, 2022, the sales increased by 15% and 50 employees left the entityWhat is the compensation expense for 2022?
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On January 1, 2020, the entity granted share options of 100,000 ordinary shares (with par value of P30 per share) at an option price of P38 per share as compensation to its officers for services to be rendered in the next three years. These options are exercisable within two years from January 1, 2023, provided that the officers remain in the employ of the company. The fair value of the share options on date of grant is P12, and the market price of the share on grant date is P47 per share. During 2023, all share options are exercised. How much should be recognized as share premium upon exercise of the share options in 2023? A. P 2,000,000 B. P 1,200,000 C. P 800,000 D. Zero E. Option 2