On April 1, 2020, an entity subject to IFRS grants 60,000 share options to its employees. Each option has an exercise price of $18, and the fair value of the share options are estimated at $340,000. The vesting period ends on December 31, 2022, and the exercise period ends on December 31, 2023. On December 31, 2020, management estimates that 88% of the options will vest. On December 31, 2021, that estimate changes to 85%. What is the compensation expense on this share option plan for the year ended December 31, 2021? Question 14 options:
Q: Riyo Company granted 100 share options to each of its 200 employees on January 1, 2020. Each option…
A: Share option means where the employees is given share free of cost or at very nominal value if the…
Q: On May 1, 2021, Roger Rabbit Company adopted a stock-option plan that granted options to key…
A: Journal entries refers to recording of the business transaction into the books or day book of the…
Q: The Cake Company granted 100 share options to each of its 500 employees on January 1, 2018. The…
A: No. of option excercised = No. of employee x option per employee = 400 x 100 shares = 40,000 shares
Q: On January 1, 2020, COLOR Company granted 250 share options to 30o employees, conditional upon the…
A: Cumulative Compensation Expense to be recognized = Fair Value* x ( Vesting Period Lapsed / Total…
Q: On January 1, 2020, COLOR Company granted 250 share options to 300 employees, conditional upon the…
A: Compensation expense = number of x number of options x fair value of option xExpired periodTotal…
Q: On January 1,2020 , Red Day Company granted 80 share options to each of its 400 employees for the…
A: If market related conditions are failed , we will continue to record expense , i.e. we will not…
Q: On November 1, 2020, Sage Company adopted a stock-option plan that granted options to key executives…
A: Date Account titles and explanation Debit Credit 1/2/2021 No entry…
Q: On January I, 2020, the shareholders of Fire Red Company approved a plan granting certain officers…
A: Employees Stock Option Most of the companies practice to provide the stock option facility to their…
Q: On October 15, 2020, the board of directors of Ensor Materials Corporation approved a stock option…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On January 1, 2021, Cullumber Inc. granted stock options to officers and key employees for the…
A: Journal entry is a process of recording business transactions in the books of accounts for the first…
Q: On January 1, 2019, Kyle company established a share appreciation rights plan to key employees…
A:
Q: On January 1, 2020, The Red Hot Company established a share option plan for its selected senior…
A:
Q: On January 1, 2020, Jangga Group grants share options to each of its 100 employees working in the…
A: Employee compensation through the stock option is recognized at fair value over the vesting period…
Q: On July 1, 2020, Paulina, Inc. granted share options to executives, which options allow them to…
A: Total expected compensation expense at the end of 2020 = (market price of share - par value per…
Q: On January 1, 2019, a company granted 10,000 options to key executives. Each option allows the…
A: Compensation expense = Total Compensation * 1/3 =$792,000 * 1/3 = $264,000
Q: On January 1, 2021, Titania Inc. granted stock options to officers and key employees for the…
A: Stock options: A stock option gives a right to the option holder (investor) to exercise the option…
Q: On January 1, 2021, Flounder Inc. granted stock options to officers and key employees for the…
A: Please find the answers to the above questions below:
Q: On January 1, 2020, Panic Company granted to a senior executive 30,000 share options, conditional…
A: A company can compensate its employees with shares in the business. The intention is to align…
Q: On January 1, 2020, Marie Company granted 200 share options to 300 employees, conditional upon the…
A: Share option means where the employees is given share free of cost or at very nominal value if the…
Q: On January 1,2019, an entity granted 100 share options each to 500 employees, conditional upon…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On January 1, 2020 share options were granted to employees where they can purchase 100,000 ordinary…
A: Share-Based Payment:- It is a payment where company receives goods or service either in…
Q: On January 1, 2019, Nichols Corporation granted 10,000 options to key executives. Each option allows…
A: Given information is: On January 1, 2019, Nichols Corporation granted 10,000 options to key…
Q: ABC Corp. on January 1, 2016, granted share options for 40,000 shares of its €10 par value ordinary…
A: On 01.01.2016, ABC Corp. granted share options = 40000 shares Par value per share = E10 Market…
Q: On January 1, 2018, Adams-Meneke Corporation granted 25 million incentive stock options to division…
A: 1) Total Compensation cost on January 1, 2018 = No. of Stock options*Fair Value of Option Total…
Q: On January 1, 2020, ABC Company granted share options to each of the 300 employees working in the…
A: The amount received by a business entity by issuing shares at an amount higher than its par value is…
Q: On January 1, 2020, XYZ Co. granted options to key executives to purchase 100,000 shares of the…
A: Journal entry is a primary entry that records the financial transactions initially.
Q: On January 1, 2020, Easy Company granted 30,000 share options to employees. The share options will…
A: Meaning of ESOP ESOP can be defined as an employee benefit plan the purpose of which is to…
Q: Items 23 to 26 are based on the Following Information: On January 1, 2019, an entity granted 100…
A: Computation Of Compensation Expense For 2019: a Number Of Employees On Grant Date 500 b…
Q: On July 1, 2019, Sunland Financial Corporation granted 50,000 options to key executives. Each option…
A: Date Account Titles and Explanation Debit Credit July 1, 2019 No Entry on grant date…
Q: .On January 1, 2019, Kamagong Company granted 100 share options each to 500 employees, conditional…
A: Total expected cost = No. of share options per employee x no. of employees x fair value per option…
Q: Palvinder Inc. has an employee share option plan (ESOP) for its senior executives. On January 1,…
A: Fair Value per Employee Stock Option = Total Fair Value of ESOPNumber of Options issued
Q: On November 1, 2020, Sarasota Company adopted a stock-option plan that granted options to key…
A: Journal entry: Journal entry refers to an entry that is made to record the transactions which are…
Q: On January 1, 2020 share options were granted to employees where they can purchase 100,000 ordinary…
A: 1. Share-Based Payment:- It is a payment where company receives goods or service either in…
Q: On January 1, 2019, a company granted 100,000 options to key executives. Each option allows the…
A: Given:
Q: The Cake Company granted 100 share options to each of its 500 employees on January 1, 2018. The…
A: The fair value of the option is P30 per share Exercise price per share = P120 Face Value of each…
Q: On December 31, 2016, Sedona Inc. granted 160,000 options to key executives. Each option allows the…
A: For the years 2017 and 2018 compensation expense should be: = Fair value of options on the grant…
Q: On January 1, 2020, Prospero Games Inc. granted stock options to managers and key employees under…
A: Employees stock option Plan Employees stock option plan which is considered to be the best option…
Q: On January 1, 2020, Myeoong Company granted 60,000 share options to employees. The share options…
A: Upon exercise of equity options on December 31, 2023, Following journal entry will be passed:…
Q: Heidi Software Corporation provides a variety of share-based compensation plans to its employees.…
A: 1. Determine the total compensation cost pertaining to the options. Total compensation cost =…
Q: On January 1, 2020, Oriole Corporation granted 19,400 options to key executives. Each option allows…
A: Journal is the recording of financial transactions chronologically according to dual entity concept.…
Q: On Jan. 1, 2020, Hufflepuff Industries, Inc. issues stock options for 100,000 shares to a regional…
A: A contract between the two person which provides the right to the holder to buy or sell a specified…
Q: On January 1, 2020 share options were granted to employees where they can purchase 100,000 ordinary…
A: 1. Share-Based Payment:- It is a payment where company receives goods or service either in…
Q: On January 1, 2019, an entity granted 100 share options each to 500 employees, conditional upon the…
A: Share option means where the employees is given share free of cost or at very nominal value if the…
Q: On January 1, 2021, Sarasota Inc. granted stock options to officers and key employees for the…
A: Date Account Titles and Explanation Debit ($) Credit ($) Jan 1, 2021 No entry 0 0 Dec…
Q: On January 1, 2020, Jade Company granted 100 share options each to 500 employees, conditional upon…
A: Options are issued to the employees at a lesser price.
Q: On January 2, 2021, the Life Science Corporation granted 9,000 stock options allowing employees to…
A: Compensation expense for year 2021 =Number of stock options granted × Fair value of stock…
Q: 2. On January 1, 2019, an entity granted 60,000 share options to employees. The share options vest…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…
Q: On January 1, 2020, ABC Company granted 80,000 share options to employees. The share options will…
A: Compensation expense for 2022 = (Share prices on December 31, 2022 - option price ) x no. of shares…
What is the compensation expense on this share option plan for the year ended December 31, 2021?
Question 14 options:
|
|
||
|
|
||
|
|
||
|
|
Step by step
Solved in 2 steps
- On January 1,2019, an entity granted 100 share options each to 500 employees, conditional upon employees’ remaining in the entity’s employ during the vesting period. The share option vest at the end of three-year period. On grant date, each share option has a fair value of P30. The par value per share is P100 and the option price is P120. On December 31, 2020, 30 employees have left and it is expected that on the basis of a weighted average probability, a further 30 employees will leave before the end of the three-year period. On December 31,2021, only 20 employees actually left and all of the share options are exercised on such date. 1. ) What is the compensation expense for 2019? a. 500,000 b. 250,000 c. 750,000 d. 450,000 2. What sis the compensation expense for 2020? a. 880,000 b. 380,000 c. 440,000 d. 500,000 3. What is the compensation expense for 2021? a. 600,000 b. 880,000 c. 380,000 d. 470,000 4. What amount was credited to share premium when the…On January 1, 2020, COLOR Company granted 250 share options to 300 employees, conditional upon the employees remaining in the entity's employ during the vesting period. The share options will vest over a three-year period. The fair value of each share option is P50. By the end of 2020, 25 employees have left and based on a weighted average probability, a further 20 employees will leave during the vesting period. By the end of 2021, only 10 employees have left and a further 28 employees will leave during 2022. By the end of 2022, only 30 employees left the entity. All share options are exercised at December 31, 2022. Color's par value per share is 75 and the option price is 100. Compute for the compensation expense for 2020, 2021 and 2022On January 1, 2020, Jangga Group grants share options to each of its 100 employees working in the sales department. Each of these employees receives 10 share options. The share options will vest on December 31, 2022, provided that the employees remain in the entity's employ. On January 1, 2021, fair value per option is P30. On December 31, 2020, it is expected that during the whole vesting period of three years, 10% of the employees will leave Jangga Group. On December 31, 2021, this expectation is revise to 30%. Finally, by December 31, 2020, 20% of the employees left Jangga Group. There is also a performance condition in addition to the service condition. According to the performance condition, the options only vest if Jangga Group's share price on December 31, 2022 exceeds its share price on January 1, 2020 by at least 20%. On December 31, 2020 and on December 31, 2021, it is expected that this target will be met. However, the target is not met by December 31, 2022. Based on the…
- On January 1, 2020, Jade Company granted 100 share options each to 500 employees, conditional upon the employees’ remaining in the entity’s employ during the vesting period. The share options vest at the end of a three-year period. On grant date, each share option has a fair value of P30. The par value per share is P100 and the option price is P120. On December 31, 2021, 30 employees have left and it is expected that on the basis of weighted average probability, a further 30 employees will leave before the of the three-year period. On December 31, 2022, only 20 employees actually left and all of the share options are exercised on such date. How much is the compensation expense that should be recognized for 2022?A . 500,000 B. 880,000 C. 380,000 D. 470,000On January 1, 2020, ABC Company granted share options to each of the 300 employees working in the Accounting department. The options price is P90 and the par value is P70 per share.The share options vest at the end of a three-year period provided that the employees remain in the entity’s employ and provided the volume of sales will increase by 10% per year.The fair value of each share option on grant date is P35.The share will vest as follows: If the sales increase by 10%, each employee will receive 200 share options; If the sales increase by 15%, each employee will receive 300 share options.· On December 31, 2020, the sales increased by 10%, and no employees have left the entity· On December 31, 2021, sales increased by 15% and no employees have left.On December 31, 2022, the sales increased by 15% and 50 employees left the entityWhat is the share premium upon exercise of the share options on December 31, 2022?Palvinder Inc. has an employee share option plan (ESOP) for its senior executives. On January 1, 2020, 20,000 options were granted under this plan. The options had an exercise price of $20 per share, and 100% of the options have vested. Details of the share option plan are as follows: When granted, the fair value of the ESOP using an appropriate option-pricing model was $120,000. On February 1, 2023, 7,000 options were exercised. The market price of Palvinder’s shares on this date was $24. On July 1, 2024, 8,000 options were exercised. The market price of Palvinder’s shares on this date was $28. The remaining options were not exercised and expired on December 31, 2025. The market price of Palvinder’s shares on this date was $19. On December 31, 2025, when the remaining options expired, what amount should have been credited to the contributed surplus — expired share options account? Assume Palvinder reports under ASPE. Question 13 options: a) $0…
- On January 1, 2020, ABC Company granted share options to each of the 300 employees working in the Accounting department. The options price is P90 and the par value is P70 per share.The share options vest at the end of a three-year period provided that the employees remain in the entity’s employ and provided the volume of sales will increase by 10% per year. The fair value of each share option on grant date is P35. The share will vest as follows: If the sales increase by 10%, each employee will receive 200 share options; If the sales increase by 15%, each employee will receive 300 share options. · On December 31, 2020, the sales increased by 10%, and no employees have left the entity· On December 31, 2021, sales increased by 15% and no employees have left.On December 31, 2022, the sales increased by 15% and 50 employees left the entityWhat is the compensation expense for 2022?On January 1, 2018, M Company granted 90,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2020, and expire on January 1, 2024. Each option can be exercised to acquire one share of $1 par common stock for $12. An option-pricing model estimates the fair value of the options to be $5 on the date of grant. If unexpected turnover in 2019 caused the company to estimate that 15% of the options would be forfeited, what amount should M recognize as compensation expense for 2019?On January 1, 2020, the shareholders of Fire Red Company approved a plan granting certain officers of the company nontransferable options to buy 50,000 shares of P 100 par ordinary share capital at P 280 per share. The option-pricing model used by the company indicates that the fair value of each option on January 2,2020 is P 30. The plan provides that the officers must be employed by the company until December 31,2022 and that options will expire at the end of 2023. At December 31, 2020, it was expected that 45,000 share options would vest, although in June 2021 some officers with 6,000 shares options left the entity. At the end of 2021, it was estimated that no other officers holding share options would leave before vesting of the options. However, an officer holding 1,500 share options left the entity in August 2022. All remaining options were exercised during 2023. REQUIRED: a) Prepare journal entries in the books of Fire Red Company pertaining to the options for years 2020-2023,…
- On July 1, 2020, Paulina, Inc. granted share options to executives, which options allow them to purchase 20,000 ordinary shares at 25 per share. The options will vest provided that the executives will be employed in the company for the next two years. The options can be exercised for a one-year period starting July 1, 2022. By end of 2020, the market price of Paulina’s ordinary share as P33 per share. The fair value of the options cannot be reliably determined. All executives are expected to remain in the company for the whole vesting period. How much should Paulina charge to compensation expense for the year ended December 31, 2020? a. P0 b. P40,000 c. P80,000 d. P160,000On January 1, 2020 share options were granted to employees where they can purchase 100,000 ordinary shares of P80 par value at P100 per share. The fair value of the share options on this date was P40 per share. The officers are entitled to the share options only after completing two years of service. The options can be exercised starting January 1, 2022 and shall expire on December 31, 2022. What amount of compensation expense will be recorded on December 31, 2021?On January 1, 2020 share options were granted to employees where they can purchase 100,000 ordinary shares of P80 par value at P100 per share. The fair value of the share options on this date was P25 per share. The officers are entitled to the share options only after completing two years of service. The options can be exercised starting January 1, 2022 and shall expire on December 31, 2022. The amount of compensation expense to be reported in 2020 is a. P0 b. P1,250,000 c. P2,500,000 d. P8,000,000 Norie Company leased an asset on a finance lease. The present value of the lease payments total P686,000 and the fair value of the asset is P750,000. The asset has a useful life of 5 years and the lease term is 4 years. The bargain purchase option for the asset at the end of its useful life is nominal and is substantially lower than the value of the asset at that date. Depreciation for the asset is computed using straight line method. How much is the annual…