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...
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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? *
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