On January 1, 2022, Amber Company granted the president compensatory share options to buy 10,000 ordinary shares of P10 par value. The options call for a price of P20 per share and are exercisable in 3 years following the grant date. The president exercised the options on December 31, 2022. The market price of the share was P60 on January 1, 2022 and P70 on December 31, 2022. The fair value of the share option is P30 on the date of grant. What amount should Amber Company report as compensation expense for 2022?ANSWER: 150,000Show full solution

According to the question given, we need to compute the compensation expense for the year…

Answered: On January 1, 2022, Amber Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2022, Amber Company granted the president compensatory share options to buy 10,000 ordinary shares of P10 par value. The options call for a price of P20 per share and are exercisable in 3 years following the grant date. The president exercised the options on December 31, 2022. The market price of the share was P60 on January 1, 2022 and P70 on December 31, 2022. The fair value of the share option is P30 on the date of grant. What amount should Amber Company report as compensation expense for 2022?

ANSWER: 150,000

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