On January 1, 2019, an entity granted 100 share options each to 500 employees, conditional upon the employee's 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, 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.   26. What amount was credited to share premium when the options were exercised on December 31, 2021? a. 2,250,000                c. 900,000 b. 2,350,000                d. 0 PROVIDE COMPUTATION

On January 1, 2020, ABC Company granted the president compensatory share options to buy 10,000 shares of P100 par value. The options call for a price of P140 per share and are exercisable for four years following the grant date. The president exercised the options on December 31, 2020. The market price of the share was P150 on January 1, 2020 and P180 on December 31, 2020. The fair value of a similar share option with the same terms was P50 on the grant date.What is the compensation expense for 2020?

On January 1, 2024, Jingrong Corporation granted stock options to key employees for the purchase of 81,000 shares of the company's common stock at $28 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2026, by the grantees still in the employ of the company. No options were terminated during 2024, but the company does have an experience of 6% forfeitures over the life of the stock options. The market price of the common stock was $34 per share at the date of the grant. Jingrong Corporation used the Binomial pricing model and estimated the fair value of each of the options at $10. What amount should Jingrong charge to compensation expense for the year ended December 31, 2024?   Multiple Choice   $405,000   $810,000   $380,700   $761,400

On January 1, 2019, a company granted 100,000 options to key executives. Each option allows the executive to purchase one share of the company’s $16 par value common stock at a price of $42 per share. The options were exercisable within a 2-year period beginning January 1, 2022. On the grant date, a fair value option-pricing model determines total compensation to be $300,000. On January 1, 2022, 6,000 options were exercised. In the journal entry to record the exercise, how much should be recorded for Paid-in Capital in Excess of Par – common stock?

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, AllClear Company issues 2,000 shares of restricted stock to its CEO, Jason Skyline.  AllClear’s stock has a fair value of $30 per share on January 1, 2020. Additional information is as follows. The service period related to the restricted stock is five years. Vesting occurs if Skyline stays with the company for a five-year period. The par value of the stock is $10 per share.  Prepare journal entries relating to the restricted stock in 2020.  Assume that Jason Skyline leaves the company on April 1, 2021 (before any expense has been recorded during 2021). Prepare journal entry relating to the restricted stock in 2021, if necessary.

On January 1, 2020 Sams Company granted Jim Norman, an employee, an option to buy 300 shares of Sams stock for $40 per share. The option is exercisable for 5 years from date of grant. Using a fair value option pricing model, total compensation expense is determined to be $4,800. The market value for each share of stock is $55 a share.   The service period for the stock compensation is for two years beginning January 1, 2020. Record the journal entries for 2020 and 2021.

On January 1, 2020, Waldorf Corporation granted 40,000 options to key executives. Each option allows the executive to purchase one share of Waldorf’s common shares at a price of $30 per share. The options were exercisable within a two–year period beginning January 1, 2022, if the grantee was still employed by the company at the time of the exercise. On the grant date, Waldorf’s shares were trading at $25 per share, and a fair value options pricing model determined total compensation to be $1,680,000. Management has assumed that there will be no forfeitures because they do not expect any of the key executives to leave. On May 1, 2022, 12,000 options were exercised when the market price of Waldorf’s shares was $34 per share. The remaining options lapsed in 2023 because executives decided not to exercise them. Management was indeed correct in their assumption regarding forfeitures in that all executives remained with the company. Assume that Waldorf follows IFRS.     Prepare the…

Under its stock option plan, Ameri Corp. granted 3 million stock options to employees on January 1, 2021. The fair value of each option is $5 and no forfeitures are anticipated. Each option permits an employee to purchase one share of $1 par common stock within the next six years, but not before December 31, 2023 (the vesting date), at an exercise price of $12 per share (the market price of the shares on the grant date). On April 3, 2024, all options are exercised when the market price is $35 per share. The journal entry Ameri would record on April 3, 2024 would include: Multiple Choice a debit to Cash for $105,000,000. a debit to Paid-in capital-stock options for $5,000,000. a debit to Compensation Expense for $15,000,000. a credit to Paid-in capital-excess of par for $48,000,000.

On January 1, 2020, Prospero Games Inc. granted stock options to managers and key employees under which the managers and employees could purchase shares of the company for $35.  Prospero set aside 40,000 shares for this purpose.  The options are exercisable within a four-year period beginning January 1, 2022 by employees still with the company, and the options expire on December 31, 2025. The estimated value of the options on January 1, 2020 is $4.50 per share.  On January 10, 2022, 16,000 of the options were exercised when the stock price was $44.  On December 17, 2022, an additional 10,000 of the options were exercised when the stock price was $48. No further stock options were exercised. Required: Prepare all the journal entries required between January 1, 2020 and December 31, 2025.