On Jan. 1, 2020, GARBO Company granted XYZ, its executive, compensatory share options to buy 10,000 share of P10 par value. The options call for a price of P20 per share and are exercisable in 3 years following grant date. XYZ exercised the options on December 31, 2020. The market price of the share was P60 on January 1, 2020 and P70 on December 31,2020. The fair value of the share option is P30 on the date of grant. By what net amount should equity increase as a result of the grant and exercise of the options? * O 200,000 300,000 500,000 O 700,000 O answer not given

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On Jan. 1, 2020, GARBO Company granted XYZ, its executive,
compensatory share options to buy 10,000 share of P10 par value. The
options call for a price of P20 per share and are exercisable in 3 years
following grant date. XYZ exercised the options on December 31, 2020.
The market price of the share was P60 on January 1, 2020 and P70 on
December 31,2020. The fair value of the share option is P30 on the date of
grant. By what net amount should equity increase as a result of the grant
and exercise of the options? *
200,000
300,000
500,000
O 700,000
O answer not given
Transcribed Image Text:On Jan. 1, 2020, GARBO Company granted XYZ, its executive, compensatory share options to buy 10,000 share of P10 par value. The options call for a price of P20 per share and are exercisable in 3 years following grant date. XYZ exercised the options on December 31, 2020. The market price of the share was P60 on January 1, 2020 and P70 on December 31,2020. The fair value of the share option is P30 on the date of grant. By what net amount should equity increase as a result of the grant and exercise of the options? * 200,000 300,000 500,000 O 700,000 O answer not given
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