On January 1, 2020 share options were granted to employees where they can purchase 100,000 ordinary shares of P80 par value at P100 per share. The fair value of the share options on this date was P25 per share. The officers are entitled to the share options only after completing two years of service. The options can be exercised starting January 1, 2022 and shall expire on December 31, 2022. The amount of compensation expense to be reported in 2020 is  P0 P1,250,000 P2,500,000 P8,000,000 A Co entered into an agreement to lease office space on 1 April 2019 for a fixed period of five years. As an incentive to encourage the office space to be occupied, a first-year rent-free period was included in the agreement after which A Co is required to pay an annual lease of P360,000. How much lease should be accounted for in the year ended 31 March 2020? P0 P288,000 P360,000 P1,440,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2020 share options were granted to employees where they can purchase 100,000 ordinary shares of P80 par value at P100 per share. The fair value of the share options on this date was P25 per share. The officers are entitled to the share options only after completing two years of service. The options can be exercised starting January 1, 2022 and shall expire on December 31, 2022. The amount of compensation expense to be reported in 2020 is 

  • P0
  • P1,250,000
  • P2,500,000
  • P8,000,000

A Co entered into an agreement to lease office space on 1 April 2019 for a fixed period of five years. As an incentive to encourage the office space to be occupied, a first-year rent-free period was included in the agreement after which A Co is required to pay an annual lease of P360,000. How much lease should be accounted for in the year ended 31 March 2020?

  • P0
  • P288,000
  • P360,000
  • P1,440,000
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