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? P 2,000,000 P 1,200,000 P 800,000 Zero
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? P 2,000,000 P 1,200,000 P 800,000 Zero
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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?
P 2,000,000
P 1,200,000
P 800,000
Zero
Option 2
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