Received and expense is recognized when incurred

received, and expense is recognized when incurred
regardless of when paid.
a.
Both statement are false.
b.
Only Statement II is true.
c.
Both statements are true.
d.
Only Statement I is true.
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The correct answer is: Only Statement II is true.
Question 15
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On January 1, 2022, TXT Company granted share
options to certain key employees as addditional
compensation. The options were for 150,000 ordinary
shares of P10 par value at an option price of P20 per
share. Market price of this share on January 1, 2022
was P25. The fair value of each share option on
January 1, 2022 is P12. The options were exercisable
beginning January 1, 2022 and expire on December
31, 2023. On December 31, 2022, all share options
were exerciseD. What amount should be recognized
as share premium upon exercise of the share options
on December 31, 2022?

900,000
b.
500,000
c.
3,300,000
d.
1,300,000
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The correct answer is: 3,300,000
Question 16
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Statement I - Subscribed ordinary shares are included
in computing EPS.
Statement II - The basic earnings per share is
computed by dividing the net income by all shares
outstanding.