On January 1, 2021 YL Company granted to an employee the right to choose either 12,000 shares or a cash payment equal to the market value of 10,000 shares. The grant is conditional upon completion of three years of service. On January 1, 2021 the share price is P51 while the fair value of the share alternative is P48 per share. Share prices were P54, P60 and P65 on December 31, 2021, December 31, 2022 and December 31, 2023 respectively. 15. Determine the compensation expense in 2021 a. 192,000 b. 214,000 c. 246,000 d. 202,000 16. Determine the compensation expense in 2022 a. 242,000 b. 202,000 c. 422,000 d. 286,000
On January 1, 2021 YL Company granted to an employee the right to choose either 12,000 shares or a cash payment equal to the market value of 10,000 shares. The grant is conditional upon completion of three years of service. On January 1, 2021 the share price is P51 while the fair value of the share alternative is P48 per share. Share prices were P54, P60 and P65 on December 31, 2021, December 31, 2022 and December 31, 2023 respectively. 15. Determine the compensation expense in 2021 a. 192,000 b. 214,000 c. 246,000 d. 202,000 16. Determine the compensation expense in 2022 a. 242,000 b. 202,000 c. 422,000 d. 286,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Problem 9:
On January 1, 2021 YL Company granted to an employee the right to choose either 12,000
shares or a cash payment equal to the market value of 10,000 shares. The grant is conditional
upon completion of three years of service.
On January 1, 2021 the share price is P51 while the fair value of the share alternative is P48 per
share. Share prices were P54, P60 and P65 on December 31, 2021, December 31, 2022 and
December 31, 2023 respectively.
15. Determine the compensation expense in 2021
a. 192,000
b. 214,000
c. 246,000
d. 202,000
16. Determine the compensation expense in 2022
a. 242,000
b. 202,000
c. 422,000
d. 286,000
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