On January 1, 2020, Green Company had issued executive share options permitting executives to buy 40,000 shares for P25 per share. The vesting schedule is 20% the first year, 30% the second year, and 50% the third year (graded-vesting). Vesting date: December 31, 2020, Amount vesting: 20%, Fair value per option: 10; Vesting date: December 31, 2021, Amount vesting: 30%, Fair value per option: 15; Vesting date: December 31, 2022, Amount vesting: 50%, Fair value per option: 20. Assuming the entity used the straight line method, what amount of compensation expense should be recorded in 2020?
On January 1, 2020, Green Company had issued executive share options permitting executives to buy 40,000 shares for P25 per share. The vesting schedule is 20% the first year, 30% the second year, and 50% the third year (graded-vesting). Vesting date: December 31, 2020, Amount vesting: 20%, Fair value per option: 10; Vesting date: December 31, 2021, Amount vesting: 30%, Fair value per option: 15; Vesting date: December 31, 2022, Amount vesting: 50%, Fair value per option: 20. Assuming the entity used the straight line method, what amount of compensation expense should be recorded in 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, Green Company had issued executive share options permitting executives to buy 40,000 shares for P25 per share. The vesting schedule is 20% the first year, 30% the second year, and 50% the third year (graded-vesting). Vesting date: December 31, 2020, Amount vesting: 20%, Fair value per option: 10; Vesting date: December 31, 2021, Amount vesting: 30%, Fair value per option: 15; Vesting date: December 31, 2022, Amount vesting: 50%, Fair value per option: 20. Assuming the entity used the
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