By what net amount should equity increase as a result of the grant and exercise of the options?
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On Jan. 1, 2020, GARBO Company granted XYZ, its executive, compensatory share options to buy 10,000 share of P10 par value. The options call for a price of P20 per share and are exercisable in 3 years following grant date. XYZ exercised the options on December 31, 2020. The market price of the share was P60 on January 1, 2020 and P70 on December 31,2020. The fair value of the share option is P30 on the date of grant. By what net amount should equity increase as a result of the grant and exercise of the options?
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- 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, ABC Company granted DEF, the president, compensatory share options to buy 10,000 ordinary shares of P10 par value. The options call for a price of P25 per share and are exercisable in 3 years following the grant date. DEF exercised the options on December 31, 2020. The market price of the share was P60 on January 1, 2020, and P70 on December 31, 2020. The fair value of the share option is P35 on the date of grant.By what net amount should shareholders’ equity increase as a result of the grant and exercise of the options? a. 250,000 b. 205,000 c. 350,000 d. 600,000On Jan. 1, 2010, EASY Company granted ABC, its executive, compensatory share options to buy 10,000 share of P10 par value. The options call for a price of P20 per share and are exercisable in 3 years following grant date. ABC exercised the options on December 31, 2010. The market price of the share was P60 on January 1, 2010 and P70 on December 31,2010. The fair value of the share option is P30 on the date of grant. By what net amount should equity increase as a result of the grant and exercise of the options?
- On January 1, 2020, ABC Company granted the president compensatory share options to buy 10,000 shares of P100 par value. The options call for a price of P140 per share and are exercisable for four years following the grant date. The president exercised the options on December 31, 2020. The market price of the share was P150 on January 1, 2020 and P180 on December 31, 2020. The fair value of a similar share option with the same terms was P50 on the grant date.What is the compensation expense for 2020?On July 1, 2020, Paulina, Inc. granted share options to executives, which options allow them to purchase 20,000 ordinary shares at 25 per share. The options will vest provided that the executives will be employed in the company for the next two years. The options can be exercised for a one-year period starting July 1, 2022. By end of 2020, the market price of Paulina’s ordinary share as P33 per share. The fair value of the options cannot be reliably determined. All executives are expected to remain in the company for the whole vesting period. How much should Paulina charge to compensation expense for the year ended December 31, 2020? a. P0 b. P40,000 c. P80,000 d. P160,000On January 1, 2020, Jade Company granted 100 share options each to 500 employees, conditional upon the employees’ 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, 2021, 30 employees have left and it is expected that on the basis of weighted average probability, a further 30 employees will leave before the of the three-year period. On December 31, 2022, only 20 employees actually left and all of the share options are exercised on such date. How much is the compensation expense that should be recognized for 2022?A . 500,000 B. 880,000 C. 380,000 D. 470,000
- 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 2On 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? P 2,000,000 P 1,200,000 P 800,000 Zero Option 2On 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?
- On January 1, 2020, Marie Company granted 200 share options to 300 employees, conditional upon the employees remaining in the entity's employ during the vesting period. The share options will vest over a three- year period. The fair value of each share optiom is P50. By the end of 2020 employees have left and based on a weighted average probability, a further 10 employees will leave during the vesting period. By the end of 2021, only 8 employees have left and a further 32 employees will leave during 2022. By the end of 2022, only 25 employees left the entity. Required: Compute the compensation expense for 2020, 2021 and 2022 as a result of the share options.On January 1, 2020, COLOR Company granted 250 share options to 300 employees, conditional upon the employees remaining in the entity's employ during the vesting period. The share options will vest over a three-year period. The fair value of each share option is P50. By the end of 2020, 25 employees have left and based on a weighted average probability, a further 20 employees will leave during the vesting period. By the end of 2021, only 10 employees have left and a further 28 employees will leave during 2022. By the end of 2022, only 30 employees left the entity. All share options are exercised at December 31, 2022. Color's par value per share is 75 and the option price is 100. Compute for the compensation expense for 2020, 2021 and 2022On January 1, 2020, Easy Company granted 30,000 share options to employees. The share options will vest at the end of three years provided the employees remain in service until then. The option price is P60 and the entity's share price is also P60 at the date of grant. The par value of the share is P50. At the date of grant, the entity concluded that the fair value of the share options cannot be estimated reliably. The share options have a life of 6 years. This means that the options can be exercised within three years after vesting. All share options vested at the end of three years and no employees left during the three- year period. The share prices and the number of share options exercised are set out below. Share Price Share options exercised at year-end 2020 63 2021 66 2022 75 2023 88 10,000 2024 100…