On January 1, 20x1, SUMMER HEAT Co. grants 1,000 share options to each of its 100 key employees conditional upon each employee remaining in SUMMER’s employ over the next three years. SUMMER estimates that the fair value of each share option is ₱60. On the basis of a weighted average probability, THRIVE Co. estimates on December 31, 20x1 and December 31, 20x2 that 20 per cent of the employees will leave during the three-year period and therefore forfeit their rights to the share options. Twenty (20) employees actually left the company during the three-year period. Fifteen (15) employees left in 20x1 and the other five (5) left in 20x3. How much is the salaries expense in 20x3? *
On January 1, 20x1, SUMMER HEAT Co. grants 1,000 share options to each of its 100 key employees conditional upon each employee remaining in SUMMER’s employ over the next three years. SUMMER estimates that the fair value of each share option is ₱60. On the basis of a weighted average probability, THRIVE Co. estimates on December 31, 20x1 and December 31, 20x2 that 20 per cent of the employees will leave during the three-year period and therefore forfeit their rights to the share options. Twenty (20) employees actually left the company during the three-year period. Fifteen (15) employees left in 20x1 and the other five (5) left in 20x3. How much is the salaries expense in 20x3? *
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, 20x1, SUMMER HEAT Co. grants 1,000 share options to each of its 100 key employees conditional upon each employee remaining in SUMMER’s employ over the next three years. SUMMER estimates that the fair value of each share option is ₱60. On the basis of a weighted average probability, THRIVE Co. estimates on December 31, 20x1 and December 31, 20x2 that 20 per cent of the employees will leave during the three-year period and therefore forfeit their rights to the share options. Twenty (20) employees actually left the company during the three-year period. Fifteen (15) employees left in 20x1 and the other five (5) left in 20x3. How much is the salaries expense in 20x3? *
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