2-17. On January 2, 2020, the shareholders of Fire Red Company nontransferable options to buy 50,000 shares of P100 par approved a plan granting certain officers of the company ordinary share capital at P280 per share. model used by the company indicates that the fair value of each option on January 2, 2020 is P30. The plan provides that the officers must be employed by the company until December 31, 2022 and that the options will expire at the end of 2023. The option-pricing
2-17. On January 2, 2020, the shareholders of Fire Red Company nontransferable options to buy 50,000 shares of P100 par approved a plan granting certain officers of the company ordinary share capital at P280 per share. model used by the company indicates that the fair value of each option on January 2, 2020 is P30. The plan provides that the officers must be employed by the company until December 31, 2022 and that the options will expire at the end of 2023. The option-pricing
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:approved a plan granting certain officers of the company
2-17. On January 2, 2020, the shareholders of Fire Red Company
nontransferable options to buy 50,000 shares of P100 par
Computation of compensation expense for years 2020,
(a)
2021 and 2022.
Entries as a result of the foregoing for year 2020 through
(b)
2023, inclusive.
a plan granting certain officers of the company
ordinary share capital at P280 per share.
model used by the company indicates that the fair value of each
option on January 2, 2020 is P30. The plan provides that the
officers must be employed by the company until December 31,
2022 and that the options will expire at the end of 2023.
The option-pricing
149
Transcribed Image Text:Chapter 2-Shareholders' Equity
options would vest, although 'in June 2021 some officers with
6.000 share options left the entity. At the end of 2021, it was
estimated that no other officers holding share options would
leave before vesting of the options. However, an officer holding
1,500 share options left the entity in August 2022.
remaining options were exercised during 2023.
All
REQUIRED:
Prepare journal entries in the books of Fire Red Company
pertaining to the options for years 2020 - 2023, inclusive.
its 200 employees on January 1, 2020. The option plan eery
the employees to buy a share of the entity's P200 par
ordinary
share oonitel et P220 ner share
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