On January 1, 2020, ABC Corporation granted share options to its employees with a fair value of P4,500,000. The options vest in three years and are exercisable starting January 1, 2023 until Dec. 31, 2023. On December 31, 2020, it was estimated that 5% of the employees will leave the Company. This estimate was revised to 6% during the year 2021. On December 31, 2022, it was determined that 80% of the employees remained in the company. What is the amount charged to compensation expense in 2022? A. P1,500,000 B. P1,425,000 C. P1,395,000 D. P780,000
On January 1, 2020, ABC Corporation granted share options to its employees with a fair value of P4,500,000. The options vest in three years and are exercisable starting January 1, 2023 until Dec. 31, 2023. On December 31, 2020, it was estimated that 5% of the employees will leave the Company. This estimate was revised to 6% during the year 2021. On December 31, 2022, it was determined that 80% of the employees remained in the company. What is the amount charged to compensation expense in 2022? A. P1,500,000 B. P1,425,000 C. P1,395,000 D. P780,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, ABC Corporation granted share options to its employees with a fair value of P4,500,000. The options vest in three years and are exercisable starting January 1, 2023 until Dec. 31, 2023. On December 31, 2020, it was estimated that 5% of the employees will leave the Company. This estimate was revised to 6% during the year 2021. On December 31, 2022, it was determined that 80% of the employees remained in the company. What is the amount charged to compensation expense in 2022?
A. P1,500,000
B. P1,425,000
C. P1,395,000
D. P780,000
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