Problem 25-19 (IFRS) On January 1, 2020, Jester Company granted 50,000 share appreciation rights to employees. The vesting period is 4 The agreement required the entity to pay cash based on the excess of market price over the predetermined price of P100. The market price per share is P120 on December 31, 2020 and P130 on December 31, 2021. December 31, 2021, Jester Company modified the agreemént and canceled the 50.000 share appreciation rights. tharead, Jester Company granted 50,000 share options provided Chat the employees remain with the entity for the next two years. On this date, the fair value of the share option is P7o. The options are exercisable at the end of the remaining tWo-year period. The option price is P110 and the par value is P100. On December 31, 2023, only 40,000 share options were exercised and. 10,000 options were forfeited. 1. What is the compensation expense for 2020? a. 250,000 b. 500,000 400,000 d. 300,000 с. 2. What is the compensation expense for 2021? 1,000,000 b. 1,500,000 750,000 500,000 a. C. d. 8. What is the compensation expense for 2022? a. 2,625,000 b. 1,750,000 875,000 d. 500,000 C.
Problem 25-19 (IFRS) On January 1, 2020, Jester Company granted 50,000 share appreciation rights to employees. The vesting period is 4 The agreement required the entity to pay cash based on the excess of market price over the predetermined price of P100. The market price per share is P120 on December 31, 2020 and P130 on December 31, 2021. December 31, 2021, Jester Company modified the agreemént and canceled the 50.000 share appreciation rights. tharead, Jester Company granted 50,000 share options provided Chat the employees remain with the entity for the next two years. On this date, the fair value of the share option is P7o. The options are exercisable at the end of the remaining tWo-year period. The option price is P110 and the par value is P100. On December 31, 2023, only 40,000 share options were exercised and. 10,000 options were forfeited. 1. What is the compensation expense for 2020? a. 250,000 b. 500,000 400,000 d. 300,000 с. 2. What is the compensation expense for 2021? 1,000,000 b. 1,500,000 750,000 500,000 a. C. d. 8. What is the compensation expense for 2022? a. 2,625,000 b. 1,750,000 875,000 d. 500,000 C.
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 7E
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Transcribed Image Text:Problem 25-19 (IFRS)
Years. The agreement reguired the entity to pay cash based
Precember 31, 2021, Jester Company modified the
agreemént and canceled the 50.000 share appreciation rights.
Instead, Jester Company granted 50,000 share options provided
Chat the employees remain with the entity for the next two
years. On this date, the fair value of the share option is P7o.
2020 and P130 on December 31, 2021.
BWo-year period. The option price is P110 and the par value is
P100.
The options are exercisable at the end of the remaining
On December 31, 2023, only 40,000 share options were
exercised and 10,000 options were forfeited.
1. What is the compensation expense for 2020?
а. 250,000
b. 500,000
400,000
d. 300,000
с.
2. What is the compensation expense for 2021?
1,000,000
b. 1,500,000
750,000
500,000
a.
с.
d.
3. What is the compensation expense for 2022?
a. 2,625,000
b. 1,750,000
875,000
d.
C.
500,000
What is the compensation expense for 2023?
2,800,000
b. 2,400,000
900,000
d.
a.
с.
175,000
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