# Determine the resulting share premium from the

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10. Determine the resulting share premium from the exercise of the options in 2022(gross of share options)a.800,000b.1,800,000c.500,000d.1,300,000
Problem 7:On January 1, 2021, an entity granted 100 share options each to 500 employees, conditionalupon the employee’s remaining in the entity’s employ during the vesting period. The shareoptions vest at the end of a three-year period. On grant date, each share option has a fair valueof P30. The par value per share is P100 and the option price is P120. On December 31, 2022,30 employees have left and it is expected that on the basis of a weighted average probability, afurther 30 employees will leave before the end of the three-year period. On December 31, 2023,only 20 employees actually left and all of the share options are exercised on such date.11. Determine the compensation expense for 2023
12. Determine the resulting share premium when the options were exercised onDecember 31, 2023 (gross of share options).
Problem 8:An entity granted 30,000 share appreciation rights which entitled key employees to receive cashequal to the difference between P200 and the market price of the share on the date each right isexercised. The service period is 2021 through 2023 and the rights are exercisable in 2024. Themarket price of the share was P250 and P280 on December 31, 2021 and 2022, respectively.13. What is the compensation expense for 2022?
14. What amount should be reported as liability under the share appreciation rightson December 31, 2022?a.. 0
b.1,600,000c.1,300,000d.2,400,000Problem 9:On January 1, 2021 YL Company granted to an employee the right to choose either 12,000shares or a cash payment equal to the market value of 10,000 shares. The grant is conditionalupon completion of three years of service.On January 1, 2021 the share price is P51 while the fair value of the share alternative is P48 pershare. Share prices were P54, P60 and P65 on December 31, 2021, December 31, 2022 andDecember 31, 2023 respectively.15. Determine the compensation expense in 2021

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Term
Spring
Professor
ElmerEleria
Tags
Dividend