*see attachedWhat is the compensation expense for 2021?a. 120,000b. 240,000c. 200,000d. 660,000 On Jan. 1, 2020, Luna Company granted 60,000 share options to employees.The share options will vest at the end of three years provided the employeesremain in service until then. The option price is Php60 and the par value pershare is Php50.At the date of grant, the entity concluded that the fair value of the shareoptions cannot be measured reliably.The share options have a life of 4 years which means that the share optionscan be exercised within one year after vesting.The share prices are Php62 on Dec. 31, 2020, Php66 on Dec. 31, 2021, Php75on Dec. 31, 2020 and Php85 on Dec. 31, 2023. All share options wereexercised on Dec. 31, 2023.

Share option means where the employees is given share free of cost or at very nominal value if the…

Answered: *see attached What is the compensation…

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Accounting

*see attached What is the compensation expense for 2021? a. 120,000 b. 240,000 c. 200,000 d. 660,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

*see attached

What is the compensation expense for 2021?

a. 120,000
b. 240,000
c. 200,000
d. 660,000

On Jan. 1, 2020, Luna Company granted 60,000 share options to employees.
The share options will vest at the end of three years provided the employees
remain in service until then. The option price is Php60 and the par value per
share is Php50.
At the date of grant, the entity concluded that the fair value of the share
options cannot be measured reliably.
The share options have a life of 4 years which means that the share options
can be exercised within one year after vesting.
The share prices are Php62 on Dec. 31, 2020, Php66 on Dec. 31, 2021, Php75
on Dec. 31, 2020 and Php85 on Dec. 31, 2023. All share options were
exercised on Dec. 31, 2023.

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