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...
icon
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
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for Employee Compensations and Benefits
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.
Similar questions
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L