3. How much is the balance of Share Options Outstanding at the end of 2020? DASHER Company adopted the following share compensation plan for its employees: • Vesting condition o Employees must remain in the entity's employ during the vesting period. • Shares will vest as follows: o End of 2019, if earnings increase by at least 18% o End of 2020, if earnings over two years increase by average of at least 13% o End of 2021, if earnings over three years increase by average of at least 10% • Assumptions o 100 share options granted to each of the 1,000 employees on January 1, 2019 (total shares – 100,000) o FV of each share option is P30. • Actual and revised estimate of entity's average earnings o End of 2019: actual – 14%, estimated earnings in 2020 – 14% o End of 2020: actual – 10%, estimated earnings in 2021- 6% o End of 2021: actual – 8% • Actual and estimate of employees who will leave the company o 2019 – 60 employees left, additional employees to leave – 70 o 2020 – 50 employees left, additional employees to leave – 30 o 2021 – 40 employees left
3. How much is the balance of Share Options Outstanding at the end of 2020? DASHER Company adopted the following share compensation plan for its employees: • Vesting condition o Employees must remain in the entity's employ during the vesting period. • Shares will vest as follows: o End of 2019, if earnings increase by at least 18% o End of 2020, if earnings over two years increase by average of at least 13% o End of 2021, if earnings over three years increase by average of at least 10% • Assumptions o 100 share options granted to each of the 1,000 employees on January 1, 2019 (total shares – 100,000) o FV of each share option is P30. • Actual and revised estimate of entity's average earnings o End of 2019: actual – 14%, estimated earnings in 2020 – 14% o End of 2020: actual – 10%, estimated earnings in 2021- 6% o End of 2021: actual – 8% • Actual and estimate of employees who will leave the company o 2019 – 60 employees left, additional employees to leave – 70 o 2020 – 50 employees left, additional employees to leave – 30 o 2021 – 40 employees left
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 7RE: On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25...
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How much is the balance of Share Options Outstanding at the end of 2020?
![3. How much is the balance of Share Options Outstanding at the end of
2020?
DASHER Company adopted the following share compensation plan for its employees:
• Vesting condition
o Employees must remain in the entity's employ during the vesting period.
• Shares will vest as follows:
o End of 2019, if earnings increase by at least 18%
o End of 2020, if earnings over two years increase by average of at least 13%
o End of 2021, if earnings over three years increase by average of at least 10%
• Assumptions
o 100 share options granted to each of the 1,000 employees on January 1, 2019
(total shares – 100,000)
o FV of each share option is P30.
• Actual and revised estimate of entity's average earnings
o End of 2019: actual – 14%, estimated earnings in 2020 – 14%
o End of 2020: actual – 10%, estimated earnings in 2021– 6%
o End of 2021: actual – 8%
• Actual and estimate of employees who will leave the company
o 2019 – 60 employees left, additional employees to leave – 70
o 2020 – 50 employees left, additional employees to leave – 30
2021 – 40 employees left](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F062a6a0a-ab8f-42bc-adb5-8c90f0a4cd5f%2F86dc4267-2d9c-4f48-8333-2ee654b72d2e%2Fzax7u8_processed.png&w=3840&q=75)
Transcribed Image Text:3. How much is the balance of Share Options Outstanding at the end of
2020?
DASHER Company adopted the following share compensation plan for its employees:
• Vesting condition
o Employees must remain in the entity's employ during the vesting period.
• Shares will vest as follows:
o End of 2019, if earnings increase by at least 18%
o End of 2020, if earnings over two years increase by average of at least 13%
o End of 2021, if earnings over three years increase by average of at least 10%
• Assumptions
o 100 share options granted to each of the 1,000 employees on January 1, 2019
(total shares – 100,000)
o FV of each share option is P30.
• Actual and revised estimate of entity's average earnings
o End of 2019: actual – 14%, estimated earnings in 2020 – 14%
o End of 2020: actual – 10%, estimated earnings in 2021– 6%
o End of 2021: actual – 8%
• Actual and estimate of employees who will leave the company
o 2019 – 60 employees left, additional employees to leave – 70
o 2020 – 50 employees left, additional employees to leave – 30
2021 – 40 employees left
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