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On January 1, 20x1, Charlotte, Inc. entity grants 100 share options to each of its 500 employees. Each grant is conditional upon the employee working for the entity over the next three (3) years. The entity estimates that the fair valu

On January 1, 20x1, Charlotte, Inc. entity grants 100 share options to each of its 500 employees. Each grant is conditional upon the employee working for the entity over the next three (3) years. The entity estimates that the fair valu

Intermediate Accounting: Reporting And Analysis
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, 20x1, Charlotte, Inc. entity grants 100 share options to each of its 500 employees. Each grant is conditional upon the employee working for the entity over the next three (3) years. The entity estimates that the fair value of the share option is P24. On the basis of a weighted average probability, the entity estimates that 20% of employees will leave during the three (3) year period and therefore forfeit their rights to the share options.

REQUIRED:

If everything turns out exactly as expected, compute the following:

  1. Salaries expense for 20x1
  2. Salaries expense for 20x2
  3. Salaries expense for 20x3
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