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*see attached problem REQUIRED: What is the compensation expense for 2022?

*see attached problem REQUIRED: What is the compensation expense for 2022?

FINANCIAL ACCOUNTING
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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*see attached problem

REQUIRED:

What is the compensation expense for 2022?

On Jan. 1, 2020, Luna Company granted 60,000 share options to employees. The share options will vest at the end of three years provided the employees remain in service until then. The option price is Php60 and the par value per share is Php50. At the date of grant, the entity concluded that the fair value of the share options cannot be measured reliably. The share options have a life of 4 years which means that the share options can be exercised within one year after vesting. The share prices are Php62 on Dec. 31, 2020, Php66 on Dec. 31, 2021, Php75 on Dec. 31, 2020 and Php85 on Dec. 31, 2023. All share options were exercised on Dec. 31, 2023.
Transcribed Image Text:On Jan. 1, 2020, Luna Company granted 60,000 share options to employees. The share options will vest at the end of three years provided the employees remain in service until then. The option price is Php60 and the par value per share is Php50. At the date of grant, the entity concluded that the fair value of the share options cannot be measured reliably. The share options have a life of 4 years which means that the share options can be exercised within one year after vesting. The share prices are Php62 on Dec. 31, 2020, Php66 on Dec. 31, 2021, Php75 on Dec. 31, 2020 and Php85 on Dec. 31, 2023. All share options were exercised on Dec. 31, 2023.
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