On January 1,2020, V Co. issued 100 share options to each of its 15 executive officers. The options vest at the end of a 4-year period. On the date of grant, each share option had a fair value of P 10. V expects that all 1,500 options will vest. After the 4 year period, all executives are still in the employ of V Co. and 7 executives exercised their option and purchased the shares for P 17 each. The par value of each share is P 15. How much is credited to the share premium account if 7 of the executives exercised their share options?

On January 1,2020, V Co. issued 100 share options to each of its 15 executive officers. The options vest at the end of a 4-year period. On the date of grant, each share option had a fair value of P 10. V expects that all 1,500 options will vest. After the 4 year period, all executives are still in the employ of V Co. and 7 executives exercised their option and purchased the shares for P 17 each. The par value of each share is P 15. How much is credited to the share premium account if 7 of the executives exercised their share options?

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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