On January 1, 2021, an entity grants five employees 1,000 share options as compensation for their commendable past performance. The share options are exercisable immediately at an exercise price of ₱70, but will expire after two years' time. The fair value per option on grant date is ₱60. As of year-end, no employee has yet exercised its share option. How much is the salaries expense of the year ended January 1, 2021?
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On January 1, 2021, an entity grants five employees 1,000 share options as compensation for their commendable past performance. The share options are exercisable immediately at an exercise price of ₱70, but will expire after two years' time. The fair value per option on grant date is ₱60. As of year-end, no employee has yet exercised its share option. How much is the salaries expense of the year ended January 1, 2021?
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- 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?DRAX Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between ₱50 and the market price of the share on the date each right is exercised. The service period is 2020 through 2022, and the rights are exercisable in 2023. The market price of the share was ₱55 and ₱60 on December 2020 and 2021, respectively. What amount should be recorded as compensation expense for 2021? a. ₱ 200,000 b. ₱ 150,000 c. ₱ 50,000 d. ₱ 350,000Lion 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? A. 150,000 B. 120,000 C. 110,000 D. 10,000 E. answer not given
- 2. On January 1, 2019, an entity granted 60,000 share options to employees. The share options vest at the end of three years provide the employees remain in service until then. The option price is P60 and the par value is P50. At the date of grant, the entity concluded that the fair value of the share options cannot be measured reliably. The share options can be exercised within one year after vesting. The share prices are P62 on December 31, 2019, P66 on December 31, 2020, P75 on December 31, 2021 and P85 on December 31, 2022. All options were exercised on December 31, 2022. • What is the compensation expense for 2021? 3. An entity began operations January 1, 2015 and reported the following net income or loss for five years of operations. 2015 P1 500 000 Loss 2016 1 300 000 Loss 2017 1 200 000 Loss 2018 4 500 000 Income 2019 9 000 000 Income On December 31, 2019, the capital accounts were: Preference share capital, P100On 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…On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 10 million of its $1 par common shares to key personnel, 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. On the grant date, the shares had a market price of $7.50 per share. Required: 1. Determine the total compensation cost pertaining to the RSUs.2. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2021.3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021.4. Prepare the appropriate journal entry to record compensation expense on December 31, 2022.5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023.6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.
- 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 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, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 25 million of its $1 par common shares to key personnel, 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. On the grant date, the shares had a market price of $3.30 per share. Required: 1. Determine the total compensation cost pertaining to the RSUs.2. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2021.3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021.4. Prepare the appropriate journal entry to record compensation expense on December 31, 2022.5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023.6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023. Please help and show formulaPHN Foods granted 18 million of its no-par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $5 per share on January 1, 2020, the grant date.Required:1. What journal entry will PHN Foods prepare to record executive compensation regarding these restricted shares at December 31, 2020 and December 31, 2021?2. When calculating diluted EPS at December 31, 2021, what will be the net increase in the weighted average number of common shares with regard to the restricted stock shares if the market price of the common shares averages $5 per share during 2021?
- On 1 July 2021 Lucas Ltd grants 300 options to each of its 80 employees conditional on the employee remaining in service over the next three years. The fair value of each option at the grant date is estimated to be $14. Lucas also estimates that 14 employees will leave over the three year vesting period. By 30 June 2022 3 employees have left and the entity estimates that a further 6 employees will leave over the next two years. On 1 July 2022 Lucas decided to reprice its share options, due to a fall in its share price over the last 12 months. At the date of repricing, Lucas estimates that the fair value of each original option is $4 and the fair value of each repriced option is $8. During the year ended 30 June 2023 a further 4 employees left and Lucas estimates that another 4 employees will leave during the next year. During the year ended 30 June 2024 only 3 employees left. The share options vested on 30 June 2024. The yearly incremental remuneration expense for the year ended 30…U-LEE Company granted 180,000 restricted share awards of its no-par ordinary shares to executives, subject to forfeiture if employment is terminated within three years. U-LEE's' ordinary shares have a market price of $10 per share on January 1, 2021, the grant date, and on December 31, 2022, averaging $10 throughout the year. Discuss how the restricted share awards as compensation affect the computation of diluted EPS on December 31, 2021, the net increase in the denominator of the EPS.In 2020, a public Canadian corporation grants an employee an option to purchase 5,000 shares for $75 a share when the shares were trading for $74. The employee exercises the option in 2020 when the shares were trading for $79 a share. In 2021, all the shares were sold when they were trading for $85 a share. What is the impact on 2020 Division B (Net Income) and Division C (Taxable Income)? O 12,500 increase in Division B and Division C O 25,000 increase in Division B and 12,500 increase in Division C 10,000 increase in Division B and Division C 20,000 increase in Division B and 10,000 increase in Division C