On January 1, Year 1, Pancit Company offered the top management share appreciation right with the following terms: Predetermined price- P100 per share Number of shares- 50,000 shares Service period- 3 years Exercise date- January 1, Year 4 The quoted prices per share are 100, 124, 151 and 151 on January 1, Year 1, December 31, Year 1, December 31, Year 2 and December 31, Year 3, respectively. What amount should be charged to compensation expense for Year 3 as a result of the share appreciation right? A. 1,300,000 B. 0 C. 2,550,000 D. 850,000

On January 1, Year 1, Pancit Company offered the top management share appreciation right with the following terms: Predetermined price- P100 per share Number of shares- 50,000 shares Service period- 3 years Exercise date- January 1, Year 4 The quoted prices per share are 100, 124, 151 and 151 on January 1, Year 1, December 31, Year 1, December 31, Year 2 and December 31, Year 3, respectively. What amount should be charged to compensation expense for Year 3 as a result of the share appreciation right? A. 1,300,000 B. 0 C. 2,550,000 D. 850,000

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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