Burger Steak Co. has granted share options to employees. The total compensation expense to the vesting date of December 31, Year 4 has been calculated at P6,000,000. The entity has decided to settle the award early on December 31, Year 3. The compensation expense charged since the date of grant on January 1, Year 1 was P1,500,000 for Year 1 and P1,300,000 for Year 2. The compensation expenses that would have been charged for Year 3 is P1,200,000. What is the compensation expense for Year 3, assuming the share options are not exercised but instead, the entity paid the employees P5,000,000 on December 31, Year 3? * O 2,200,000 O 3,200,000 O 5,000,000
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- Burger Steak Co. has granted share options to employees. The total compensation expense to the vesting date of December 31, Year 4 has been calculated at P6,000,000. The entity has decided to settle the award early on December 31, Year 3. The compensation expense charged since the date of grant on January 1, Year 1 was P1,500,000 for Year 1 and P1,300,000 for Year 2. The compensation expenses that would have been charged for Year 3 is P1,200,000. What is the compensation expense for Year 3, assuming the share options are not exercised but instead, the entity paid the employees P5,000,000 on December 31, Year 3? A. 3,200,000 B. 0 C. 2,200,000 D. 5,000,000Shanghai Inc. has granted share options to employees. The total compensation expense to the vesting date of December 31, Year 4 has been calculated at P6,000,000. The entity has decided to settle the award early on December 31, Year 3. The compensation expense charged since the date of grant on January 1, Year 1 was P1,500,000 for Year 1 and P1,300,000 for Year 2. The compensation expenses that would have been charged for Year 3 is P1,200,000. What is the compensation expense for Year 3? A. 3,200,000 B. 0 C. 1,200,000 D. 2,000,000Rotate Company adopted the following share-based compensation plans for its senior executives. Each senior executive has a unique plan basing on his/her functions in the company. The par value of Rotate’s ordinary share is P20. The following share-based grants were declared by the entity. On January 1, 2021, it granted 1,000 share options each to 200 of its employees. The exercise price of the option is P25. The vesting of said shares is conditional upon the employees staying for three years, after which they have two years to exercise such before the options expire. During 2021, 5 employees resigned and an additional 15 employees are expected to leave on the next two years. During 2022, actual resignations totalled 8 and another 10 is expected to resign next year. No employees left during 2023. Sixty percent of the share options were exercised at yearend 2024 and the balance at yearend 2025. On January 1, 2022, it granted 100 of its employees 1,000 share appreciation rights…
- Rotate Company adopted the following share-based compensation plans for its senior executives. Each senior executive has a unique plan basing on his/her functions in the company. The par value of Rotate’s ordinary share is P20. The following share-based grants were declared by the entity. On January 1, 2021, it granted 1,000 share options each to 200 of its employees. The exercise price of the option is P25. The vesting of said shares is conditional upon the employees staying for three years, after which they have two years to exercise such before the options expire. During 2021, 5 employees resigned and an additional 15 employees are expected to leave on the next two years. During 2022, actual resignations totalled 8 and another 10 is expected to resign next year. No employees left during 2023. Sixty percent of the share options were exercised at yearend 2024 and the balance at yearend 2025. How much is the ending balance of the Share Options Outstanding that will show in the 2021…Rotate Company adopted the following share-based compensation plans for its senior executives. Each senior executive has a unique plan basing on his/her functions in the company. The par value of Rotate’s ordinary share is P20. The following share-based grants were declared by the entity. On January 1, 2021, it granted 1,000 share options each to 200 of its employees. The exercise price of the option is P25. The vesting of said shares is conditional upon the employees staying for three years, after which they have two years to exercise such before the options expire. During 2021, 5 employees resigned and an additional 15 employees are expected to leave on the next two years. During 2022, actual resignations totalled 8 and another 10 is expected to resign next year. No employees left during 2023. Sixty percent of the share options were exercised at yearend 2024 and the balance at yearend 2025. On January 1, 2022, it granted 100 of its employees 1,000 share appreciation rights…Rotate Company adopted the following share-based compensation plans for its senior executives. Each senior executive has a unique plan basing on his/her functions in the company. The par value of Rotate’s ordinary share is P20. The following share-based grants were declared by the entity. On January 1, 2021, it granted 1,000 share options each to 200 of its employees. The exercise price of the option is P25. The vesting of said shares is conditional upon the employees staying for three years, after which they have two years to exercise such before the options expire. During 2021, 5 employees resigned and an additional 15 employees are expected to leave on the next two years. During 2022, actual resignations totalled 8 and another 10 is expected to resign next year. No employees left during 2023. Sixty percent of the share options were exercised at yearend 2024 and the balance at yearend 2025. On January 1, 2022, it granted 100 of its employees 1,000 share appreciation rights…
- Rotate Company adopted the following share-based compensation plans for its senior executives. Each senior executive has a unique plan basing on his/her functions in the company. The par value of Rotate’s ordinary share is P20. The following share-based grants were declared by the entity. On January 1, 2021, it granted 1,000 share options each to 200 of its employees. The exercise price of the option is P25. The vesting of said shares is conditional upon the employees staying for three years, after which they have two years to exercise such before the options expire. During 2021, 5 employees resigned and an additional 15 employees are expected to leave on the next two years. During 2022, actual resignations totalled 8 and another 10 is expected to resign next year. No employees left during 2023. Sixty percent of the share options were exercised at yearend 2024 and the balance at yearend 2025. How much is the ending balance of the Accrued Salaries Payable that will show in the 2021…At the beginning of Year 4, ABC Corp. grants to a senior executive 3,000 share options, conditional upon the executive's remaining in the entity's employ until the end of Year 6. The exercise price is P40. However, the exercise price drops to P30 if the entity's earnings increase by at least an average of 10% per year over the three-year period. On grant date, the entity estimates that the fair value of the share options, with an exercise price of P30, is P15 per option. If the exercise price is P40, the entity estimates that the share options have a fair value of P12 per option. During Year 4, the entity's earnings increased by 12%, and the entity expects that earnings will continue to increase at this rate over the next two years. The entity therefore expects that the earnings target will be achieved, and hence the share options will have an exercise price of P30. During Year 5, the entity's earnings increased by 13%, and the entity continues to expect that the earnings target will…On January 1, 2021, David Mest Communications granted restricted stock units (RSUs) representing 30 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $12 per share on the grant date. At the date of grant, Mest anticipated that 6% of the recipients would leave the firm prior to vesting. On January 1, 2022, 5% of the RSUs are forfeited due to executive turnover. Mest chooses the option to account for forfeitures when they actually occur.Required:1. Prepare the appropriate journal entry to record compensation expense on December 31, 2021.2. Prepare the appropriate journal entry to record compensation expense on December 31, 2022.3. Prepare the appropriate journal entry to record compensation expense on December 31, 2023.
- Magnetic-Optical Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock unit plan, the company on January 1, 2024, granted restricted stock units (RSUs) representing 22 million of its $1 par common shares to various division managers. The shares are subject to forfeiture if employment is terminated within three years. The common shares have a market price of $4.50 per share on the grant date. Management’s policy is to estimate forfeitures. Required: Determine the total compensation cost pertaining to the RSUs. Prepare the appropriate journal entry to record the RSUs on January 1, 2024. Prepare the appropriate journal entry to record compensation expense on December 31, 2024. Suppose Magnetic-Optical expected a 10% forfeiture rate on the RSUs prior to vesting. Determine the total compensation costOn January 1, 2024, Vijay Communications granted restricted stock units (RSUs) representing 30 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $12 per share on the grant date. At the date of grant, Vijay anticipated that 6% of the recipients would leave the firm prior to vesting. On January 1, 2025, 5% of the RSUs are forfeited due to executive turnover. Vijay chooses the option to account for forfeitures when they actually occur. Required: 1. to 3. Prepare the appropriate journal entries to record compensation expense on December 31, 2024, December 31, 2025, and December 31, 2026. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as…Slytherin Services, Inc. granted 8 million of its $1 par common shares to executives subject to foreiture if employment is terminated within three years. The common shares have a market price of $6 per share on the grant date of the restricted stock award. Ignoring taxes, what is the total compensation cost pertaining to the restricted shares (first answer, no dollar signs or commas, rounded to the nearest whole dollar)?