On January 1, 2020, Gabriela & Inc. granted to its CEO the right to choose either: · Ordinary share (P25 par): 10,000 shares · Cash payment equal 7,500 shares of P25 par ordinary shares The grant will vest, provided that the CEO remained in the company for a period of three years. If the CEO opts for the share alternative, he/she shall hold the shares for a period of three years after the vesting date. On the date of grant, the share price of the ordinary share is P50. The ordinary share price for the each of the vesting period is as follows: · December 31, 2020: P52 · December 31, 2021: P57 · December 31, 2022: P61 Based on the available information of the entity, the entity estimated that the fair value of the share alternative is P48 per share. How much is the compensation expense for 2021, arising from the equity alternative and cash alternative, respectively? a. 35,000 ; 200,000 b. 35,000 ; 142,500 c. 105,000 ; 427,500 d. 35,000 ; 155,000
On January 1, 2020, Gabriela & Inc. granted to its CEO the right to choose either:
· Ordinary share (P25 par): 10,000 shares
· Cash payment equal 7,500 shares of P25 par ordinary shares
The grant will vest, provided that the CEO remained in the company for a period of three years. If the CEO opts for the share alternative, he/she shall hold the shares for a period of three years after the vesting date.
On the date of grant, the share price of the ordinary share is P50. The ordinary share price for the each of the vesting period is as follows:
· December 31, 2020: P52
· December 31, 2021: P57
· December 31, 2022: P61
Based on the available information of the entity, the entity estimated that the fair value of the share alternative is P48 per share. How much is the compensation expense for 2021, arising from the equity alternative and cash alternative, respectively?
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