Elizabeth Corporation decided to issue 2,000 share options to an employee in exchange of years of service. However, the fair value of the share options cannot be reliably measured as the entity operates in a highly specialized market where there are no comparable entities.The exercise price is P200 per share and the options were granted on January 1, 2016 when the value of each share was also estimated at P200 per share. On December 31, 2014, the value of the shares was estimated at P130 per share and the options vested on that date. What value should be placed on the share options issued for the year ended December 31, 2014?

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 26CE: On April 5, 2017, Gustavo was granted an NQSO for 200 shares of common stock at 50 per share. On the...
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Elizabeth Corporation decided to issue 2,000 share options to an employee in exchange of years of service. However, the fair value of the share options cannot be reliably measured as the entity operates in a highly specialized market where there are no comparable entities.The exercise price is P200 per share and the options were granted on January 1, 2016 when the value of each share was also estimated at P200 per share. On December 31, 2014, the value of the shares was estimated at P130 per share and the options vested on that date. What value should be placed on the share options issued for the year ended December 31, 2014? 
 
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