On January 1, 2021 YL Company granted to an employee the right to choose either 12,000 shares or a cash payment equal to the market value of 10,000 shares. The grant is conditional upon completion of three years of service. On January 1, 2021 the share price is P51 while the fair value of the share alternative is P48 per share. Share prices were P54, P60 and P65 on December 31, 2021, December 31, 2022 and December 31, 2023 respectively. 15. Determine the compensation expense in 2021 a. 192,000 b. 214,000 c. 246,000 d. 202,000 16. Determine the compensation expense in 2022 a. 242,000 b. 202,000 c. 422,000 d. 286,000

On January 1, 2021 YL Company granted to an employee the right to choose either 12,000 shares or a cash payment equal to the market value of 10,000 shares. The grant is conditional upon completion of three years of service. On January 1, 2021 the share price is P51 while the fair value of the share alternative is P48 per share. Share prices were P54, P60 and P65 on December 31, 2021, December 31, 2022 and December 31, 2023 respectively. 15. Determine the compensation expense in 2021 a. 192,000 b. 214,000 c. 246,000 d. 202,000 16. Determine the compensation expense in 2022 a. 242,000 b. 202,000 c. 422,000 d. 286,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 6P

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