Shanghai Inc. has granted share options to employees. The total compensation expense to the vesting date of December 31, Year 4 has been calculated at P6,000,000. The entity has decided to settle the award early on December 31, Year 3. The compensation expense charged since the date of grant on January 1, Year 1 was P1,500,000 for Year 1 and P1,300,000 for Year 2. The compensation expenses that would have been charged for Year 3 is P1,200,000. What is the compensation expense for Year 3? A. 3,200,000 B. 0 C. 1,200,000 D. 2,000,000

Cornerstones of Cost Management (Cornerstones Series)
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Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing
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Problem 19E
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Shanghai Inc. has granted share options to employees. The total compensation expense to the vesting date of December 31, Year 4 has been calculated at P6,000,000. The entity has decided to settle the award early on December 31, Year 3. The compensation expense charged since the date of grant on January 1, Year 1 was P1,500,000 for Year 1 and P1,300,000 for Year 2. The compensation expenses that would have been charged for Year 3 is P1,200,000.

What is the compensation expense for Year 3?

A. 3,200,000
B. 0
C. 1,200,000
D. 2,000,000
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