Reality Corporation granted 100 share appreciation rights to each of the 1,000 employees on January 1, 2016. The management estimated that 90% of the awards will vest on December 31, 2018. The fair value of each share appreciation right on December 31, 2016 is P10. What is the fair value of the Liability for the share appreciation rights on December 31, 2016? а. 900,000 b. 450,000 с. 100,000 d. 300,000

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
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Reality Corporation granted 100 share appreciation rights to each of the 1,000
employees on January 1, 2016. The management estimated that 90% of the awards
will vest on December 31, 2018. The fair value of each share appreciation right on
December 31, 2016 is P10. What is the fair value of the Liability for the share
appreciation rights on December 31, 2016?
a. 900,000
b. 450,000
100,000
d. 300,000
с.
Transcribed Image Text:Reality Corporation granted 100 share appreciation rights to each of the 1,000 employees on January 1, 2016. The management estimated that 90% of the awards will vest on December 31, 2018. The fair value of each share appreciation right on December 31, 2016 is P10. What is the fair value of the Liability for the share appreciation rights on December 31, 2016? a. 900,000 b. 450,000 100,000 d. 300,000 с.
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