FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On January 1,2020, V Co. issued 100 share options to each of its 15 executive officers. The options vest at the end of a 4-year period. On the date of grant, each share option had a fair value of P 10. V expects that all 1,500 options will vest. After the 4 year period, all executives are still in the employ of V Co. and 7 executives exercised their option and purchased the shares for P 17 each. The par value of each share is P 15.

1. How much is the compensation expense for the 3rd year in the vesting period if 5 of the executives left in the 3rd year of the vesting period?

2.  How much is the compensation expense for the 3rd year in the vesting period if 2 of the executives left in the 3rd year of the vesting period?

 

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