On January 1, 2019, Wood Company granted share options to certain key employees as additional compensation. The options were for 100,000 ordinary shares of P10 par value at an option price of P15 per share. Market price of this share on January 1, 2019 was P20. The fair value of each share option on January 1, 2019 is P8. The options were exercisable immediately beginning January 1, 2019 and expire on December 31, 2020. On December 31, 2019, all share options were exercised. What is share premium from the exercise of the options in 2020? a. 1,300,000 b. 1,800,000 c. 500,000 d. 800,000
On January 1, 2019, Wood Company granted share options to certain key employees as additional compensation. The options were for 100,000 ordinary shares of P10 par value at an option price of P15 per share. Market price of this share on January 1, 2019 was P20. The fair value of each share option on January 1, 2019 is P8. The options were exercisable immediately beginning January 1, 2019 and expire on December 31, 2020. On December 31, 2019, all share options were exercised. What is share premium from the exercise of the options in 2020? a. 1,300,000 b. 1,800,000 c. 500,000 d. 800,000
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 9E: Restricted Share Units On January 2, 2019, Dekker Company grants each of its 15 new employees 200...
Related questions
Question
On January 1, 2019, Wood Company granted share options to certain key employees as additional compensation. The options were for 100,000 ordinary shares of P10 par value at an option price of P15 per share. Market price of this share on January 1, 2019 was P20. The fair value of each share option on January 1, 2019 is P8. The options were exercisable immediately beginning January 1, 2019 and expire on December 31, 2020. On December 31, 2019, all share options were exercised.
What is share premium from the exercise of the options in 2020?
a. 1,300,000
b. 1,800,000
c. 500,000
d. 800,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT