Homework Help is Here – Start Your Trial Now!
Business
Accounting
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? * Q 850,000 2,550,000 1,300,000

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? * Q 850,000 2,550,000 1,300,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

9

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? * O 850,000 O 2,550,000 lO 1,300,000
Transcribed Image Text: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? * O 850,000 O 2,550,000 lO 1,300,000
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS