On January 1, 2016, Van Corporation granted an employee an option to purchase 3,000 shares of Van's P5 par value ordinary share at P20 each. The option became exercisable on December 31, 2018. The option was exercised on January 10, 2019. The market prices of Van's share capital were as follows: January 1, 2016 - P30; December 31, 2016 - P50, January 10, 2019 - P45. The company cannot reliably determine the fair value of the share option, so it decided to use the intrinsic value method. For the year 2016, how much should Van recognize as compensation expense?
On January 1, 2016, Van Corporation granted an employee an option to purchase 3,000 shares of Van's P5 par value ordinary share at P20 each. The option became exercisable on December 31, 2018. The option was exercised on January 10, 2019. The market prices of Van's share capital were as follows: January 1, 2016 - P30; December 31, 2016 - P50, January 10, 2019 - P45. The company cannot reliably determine the fair value of the share option, so it decided to use the intrinsic value method. For the year 2016, how much should Van recognize as compensation expense?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 7RE: On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25...
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On January 1, 2016, Van Corporation granted an employee an option to purchase 3,000 shares of Van's P5 par value ordinary share at P20 each. The option became exercisable on December 31, 2018. The option was exercised on January 10, 2019.
The market prices of Van's share capital were as follows:
January 1, 2016 - P30; December 31, 2016 - P50, January 10, 2019 - P45.
The company cannot reliably determine the fair value of the share option, so it decided to use the intrinsic value method. For the year 2016, how much should Van recognize as compensation expense?
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