Riyo Company granted 100 share options to each of its 200 employees on January 1, 2020. Each option provides the employees to purchase one ordinary share (with P100 par value) of the company at P180 per share. On date of grant, the fair value of each option is P30. In order for the option plan to vest, the employees must be employed in the company for the next three years. The options can be exercised from January 1 until December 31, 2023. On January 1, 2020, 20% of the employees are estimated to leave until the end of the vesting period. Actual and revised estimate of employees leaving the company for each year 2020, 2021, and 2022 are as follows: · 2020: 8 employees left; additional 10 employees in 2021 and 2022 · 2021: 12 employees left; additional 7 employees in 2022 · 2022: 8 employees left How much is the compensation expense for each year 2020, 2021, and 2022, respectively? a. 182,000 ; 346,000 ; 516,000 b. 192,000 ; 168,000 ; 156,000 c. 182,000 ; 164,000 ; 170,000 d. 172,000 ; 172,000 ; 172,000
Riyo Company granted 100 share options to each of its 200 employees on January 1, 2020. Each option provides the employees to purchase one ordinary share (with P100 par value) of the company at P180 per share. On date of grant, the fair value of each option is P30. In order for the option plan to vest, the employees must be employed in the company for the next three years. The options can be exercised from January 1 until December 31, 2023. On January 1, 2020, 20% of the employees are estimated to leave until the end of the vesting period. Actual and revised estimate of employees leaving the company for each year 2020, 2021, and 2022 are as follows: · 2020: 8 employees left; additional 10 employees in 2021 and 2022 · 2021: 12 employees left; additional 7 employees in 2022 · 2022: 8 employees left How much is the compensation expense for each year 2020, 2021, and 2022, respectively? a. 182,000 ; 346,000 ; 516,000 b. 192,000 ; 168,000 ; 156,000 c. 182,000 ; 164,000 ; 170,000 d. 172,000 ; 172,000 ; 172,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Riyo Company granted 100 share options to each of its 200 employees on January 1, 2020. Each option provides the employees to purchase one ordinary share (with P100 par value) of the company at P180 per share. On date of grant, the fair value of each option is P30. In order for the option plan to vest, the employees must be employed in the company for the next three years. The options can be exercised from January 1 until December 31, 2023.
On January 1, 2020, 20% of the employees are estimated to leave until the end of the vesting period. Actual and revised estimate of employees leaving the company for each year 2020, 2021, and 2022 are as follows:
· 2020: 8 employees left; additional 10 employees in 2021 and 2022
· 2021: 12 employees left; additional 7 employees in 2022
· 2022: 8 employees left
How much is the compensation expense for each year 2020, 2021, and 2022, respectively?
On January 1, 2020, 20% of the employees are estimated to leave until the end of the vesting period. Actual and revised estimate of employees leaving the company for each year 2020, 2021, and 2022 are as follows:
· 2020: 8 employees left; additional 10 employees in 2021 and 2022
· 2021: 12 employees left; additional 7 employees in 2022
· 2022: 8 employees left
How much is the compensation expense for each year 2020, 2021, and 2022, respectively?
a. 182,000 ; 346,000 ; 516,000
b. 192,000 ; 168,000 ; 156,000
c. 182,000 ; 164,000 ; 170,000
d. 172,000 ; 172,000 ; 172,000
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