On Jan. 1, 2020, Luna Company granted 60,000 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 Php60 and the par value per share is Php50. At the date of grant, the entity concluded that the fair value of the share options cannot be measured reliably. The share options have a life of 4 years which means that the share options can be exercised within one year after vesting. The share prices are Php62 on Dec. 31, 2020, Php66 on Dec. 31, 2021, Php75 on Dec. 31, 2020 and Php85 on Dec. 31, 2023. All share options were exercised on Dec. 31, 2023.

On Jan. 1, 2020, Luna Company granted 60,000 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 Php60 and the par value per share is Php50. At the date of grant, the entity concluded that the fair value of the share options cannot be measured reliably. The share options have a life of 4 years which means that the share options can be exercised within one year after vesting. The share prices are Php62 on Dec. 31, 2020, Php66 on Dec. 31, 2021, Php75 on Dec. 31, 2020 and Php85 on Dec. 31, 2023. All share options were exercised on Dec. 31, 2023.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 52P

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