Question
1. On January 1, 2018, NesarabLtd. granted 5,000 options to executives. Each option entitles the holder to purchase one share of Nesarab's 5 par value
1.On January 1, 2018, NesarabLtd. granted 5,000 options to executives. Each option entitles the holder to purchase one share of Nesarab's 5 par value ordinary shares at50 per share at any time during the next 5 years. The market price of the shares is 65 per share on the date of grant. The fair value of the options at the grant date is 150,000. The period of benefit is 1 years. (3 Marks)
Required:
1.Prepare Nesarab's necessary journal entries for January 1, 2018, and December 31, 2018.
On February 10, 2019 2000 options were exercised by executives. Record the journal entry.
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