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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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?
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- Burger Steak Co. 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, assuming the share options are not exercised but instead, the entity paid the employees P5,000,000 on December 31, Year 3? A. 3,200,000 B. 0 C. 2,200,000 D. 5,000,000Ashleigh, a public limited company, has granted share options to its employees with a fair value of P6 million. The options vest in three years' time. The Monte-Carlo model was used to value the options, and these estimates had been made • Grant date (January 20X4): estimate of employees leaving the entity during the vesting period – 5% • January 1, 20X5: revision of estimate of employees leaving to 6% before vesting date • December 31 20X6: actual employees leaving 5%Requirement: Provide all the entries from 20x4 to 20x6.Rotate Company adopted the following share-based compensation plans for its senior executives. Each senior executive has a unique plan basing on his/her functions in the company. The par value of Rotate’s ordinary share is P20. The following share-based grants were declared by the entity. On January 1, 2021, it granted 1,000 share options each to 200 of its employees. The exercise price of the option is P25. The vesting of said shares is conditional upon the employees staying for three years, after which they have two years to exercise such before the options expire. During 2021, 5 employees resigned and an additional 15 employees are expected to leave on the next two years. During 2022, actual resignations totalled 8 and another 10 is expected to resign next year. No employees left during 2023. Sixty percent of the share options were exercised at yearend 2024 and the balance at yearend 2025. On January 1, 2022, it granted 100 of its employees 1,000 share appreciation rights…
- Rotate Company adopted the following share-based compensation plans for its senior executives. Each senior executive has a unique plan basing on his/her functions in the company. The par value of Rotate’s ordinary share is P20. The following share-based grants were declared by the entity. On January 1, 2021, it granted 1,000 share options each to 200 of its employees. The exercise price of the option is P25. The vesting of said shares is conditional upon the employees staying for three years, after which they have two years to exercise such before the options expire. During 2021, 5 employees resigned and an additional 15 employees are expected to leave on the next two years. During 2022, actual resignations totalled 8 and another 10 is expected to resign next year. No employees left during 2023. Sixty percent of the share options were exercised at yearend 2024 and the balance at yearend 2025. How much is the ending balance of the Share Options Outstanding that will show in the 2021…Rotate Company adopted the following share-based compensation plans for its senior executives. Each senior executive has a unique plan basing on his/her functions in the company. The par value of Rotate’s ordinary share is P20. The following share-based grants were declared by the entity. On January 1, 2021, it granted 1,000 share options each to 200 of its employees. The exercise price of the option is P25. The vesting of said shares is conditional upon the employees staying for three years, after which they have two years to exercise such before the options expire. During 2021, 5 employees resigned and an additional 15 employees are expected to leave on the next two years. During 2022, actual resignations totalled 8 and another 10 is expected to resign next year. No employees left during 2023. Sixty percent of the share options were exercised at yearend 2024 and the balance at yearend 2025. On January 1, 2022, it granted 100 of its employees 1,000 share appreciation rights…Rotate Company adopted the following share-based compensation plans for its senior executives. Each senior executive has a unique plan basing on his/her functions in the company. The par value of Rotate’s ordinary share is P20. The following share-based grants were declared by the entity. On January 1, 2021, it granted 1,000 share options each to 200 of its employees. The exercise price of the option is P25. The vesting of said shares is conditional upon the employees staying for three years, after which they have two years to exercise such before the options expire. During 2021, 5 employees resigned and an additional 15 employees are expected to leave on the next two years. During 2022, actual resignations totalled 8 and another 10 is expected to resign next year. No employees left during 2023. Sixty percent of the share options were exercised at yearend 2024 and the balance at yearend 2025. On January 1, 2022, it granted 100 of its employees 1,000 share appreciation rights…
- Rotate Company adopted the following share-based compensation plans for its senior executives. Each senior executive has a unique plan basing on his/her functions in the company. The par value of Rotate’s ordinary share is P20. The following share-based grants were declared by the entity. On January 1, 2021, it granted 1,000 share options each to 200 of its employees. The exercise price of the option is P25. The vesting of said shares is conditional upon the employees staying for three years, after which they have two years to exercise such before the options expire. During 2021, 5 employees resigned and an additional 15 employees are expected to leave on the next two years. During 2022, actual resignations totalled 8 and another 10 is expected to resign next year. No employees left during 2023. Sixty percent of the share options were exercised at yearend 2024 and the balance at yearend 2025. How much is the ending balance of the Accrued Salaries Payable that will show in the 2021…At the beginning of Year 4, ABC Corp. grants to a senior executive 3,000 share options, conditional upon the executive's remaining in the entity's employ until the end of Year 6. The exercise price is P40. However, the exercise price drops to P30 if the entity's earnings increase by at least an average of 10% per year over the three-year period. On grant date, the entity estimates that the fair value of the share options, with an exercise price of P30, is P15 per option. If the exercise price is P40, the entity estimates that the share options have a fair value of P12 per option. During Year 4, the entity's earnings increased by 12%, and the entity expects that earnings will continue to increase at this rate over the next two years. The entity therefore expects that the earnings target will be achieved, and hence the share options will have an exercise price of P30. During Year 5, the entity's earnings increased by 13%, and the entity continues to expect that the earnings target will…On January 1, 2024, Vijay Communications granted restricted stock units (RSUs) representing 30 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $12 per share on the grant date. At the date of grant, Vijay anticipated that 6% of the recipients would leave the firm prior to vesting. On January 1, 2025, 5% of the RSUs are forfeited due to executive turnover. Vijay chooses the option to account for forfeitures when they actually occur. Required: 1. to 3. Prepare the appropriate journal entries to record compensation expense on December 31, 2024, December 31, 2025, and December 31, 2026. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as…
- On January 1, 2021, Katya Company granted share options to the employees. The total expense to the vesting date on December 31, 2024 has been calculated at P7,500,000. The entity has decided to settle the award early on December 31, 2023. The expense charged since the date of grant was P2,100,000 for 2021 and P2,300,000 for 2022. The expense that would have been charged for 2023 is P2,500,000. What amount should be recognized as compensation expense for 2023?Lion Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between P20 and the market price of the share on the date each right is exercised. The service period is 2019 through 2021, and the rights are exercisable in 2022. The market price of the share was P25 and P28 on December 31, 2019 and 2020, respectively. How much should be recorded as compensation expense for 2020? Copenhagen Company granted 200 share appreciation rights to each of the 500 employees on January 1, 2016. The rights are due to vest on December 31, 2019 with payment being made on December 31, 2020. Only 80% of the awards vest. January 1, 2016 (predetermined price)150 December 31, 2016 : 180 December 31, 2019 : 210 December 31, 2020 : 190 What amount should be recognized as gain on reversal of share appreciation rights on December 31, 2020?Please answer asap.Both a and b Earth Ltd grants 80 share options to each of its 200 employees. Each grant is conditional on the employee working for the company for 3 years following the grant date. On grant date, the fair value of each share option is estimated to be $12. Based on a weighted average probability, the company estimates that 20% of its employees will leave during the 3-year vesting period. During year 1, 15 employees left, and the company revises its estimate of total employee departures over the full 3-year period from 20% to 22%. During year 2, seven employees left, and the company revises its estimate of total employee departures over the full 3-year period from 22% to 15%. During year 3, a further four employees left. Required: a. Prepare a schedule setting out the annual and cumulative remuneration expense for years 1-3 b. Give the journal entry in year 1.