On January 1, 2020, the entity granted share options of 100,000 ordinary shares (with par valu of P30 per share) at an option price of P38 per share as compensation to its officers for services to be rendered in the next three years. These options are exercisable within two years from January 1, 2023, provided that the officers remain in the employ of the company. The fa value of the share options on date of grant is P12, and the market price of the share on grant date is P47 per share. During 2023, all share options are exercised. How much should be recognized as share premium upon exercise of the share options in 2023? *
On January 1, 2020, the entity granted share options of 100,000 ordinary shares (with par valu of P30 per share) at an option price of P38 per share as compensation to its officers for services to be rendered in the next three years. These options are exercisable within two years from January 1, 2023, provided that the officers remain in the employ of the company. The fa value of the share options on date of grant is P12, and the market price of the share on grant date is P47 per share. During 2023, all share options are exercised. How much should be recognized as share premium upon exercise of the share options in 2023? *
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2020, the entity granted share options of 100,000 ordinary shares (with par value
of P30 per share) at an option price of P38 per share as compensation to its officers for
services to be rendered in the next three years. These options are exercisable within two years
from January 1, 2023, provided that the officers remain in the employ of the company. The fair
value of the share options on date of grant is P12, and the market price of the share on grant
date is P47 per share. During 2023, all share options are exercised. How much should be
recognized as share premium upon exercise of the share options in 2023? *
O P2,000,000
O P 1,200,000
O P 800,000
O Zero
O Option 2
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