On January 1, 2019, Wood Company granted share options to certain key employees as additional compensation. The options were for 100,000 ordinary shares of P10 par value at an option price of P15 per share. Market price of this share on January 1, 2019 was P20. The fair value of each share option on January 1, 2019 is P8. The options were exercisable immediately beginning January 1, 2019 and expire on December 31, 2020. On December 31, 2019, all share options were exercised. What is share premium from the exercise of the options in 2020? a. 1,300,000 b. 1,800,000 c. 500,000 d. 800,000
On January 1, 2019, Wood Company granted share options to certain key employees as additional compensation. The options were for 100,000 ordinary shares of P10 par value at an option price of P15 per share. Market price of this share on January 1, 2019 was P20. The fair value of each share option on January 1, 2019 is P8. The options were exercisable immediately beginning January 1, 2019 and expire on December 31, 2020. On December 31, 2019, all share options were exercised. What is share premium from the exercise of the options in 2020? a. 1,300,000 b. 1,800,000 c. 500,000 d. 800,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2019, Wood Company granted share options to certain key employees as additional compensation. The options were for 100,000 ordinary shares of P10 par value at an option price of P15 per share. Market price of this share on January 1, 2019 was P20. The fair value of each share option on January 1, 2019 is P8. The options were exercisable immediately beginning January 1, 2019 and expire on December 31, 2020. On December 31, 2019, all share options were exercised.
What is share premium from the exercise of the options in 2020?
a. 1,300,000
b. 1,800,000
c. 500,000
d. 800,000
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