Answer the following problems related to IFRS 2 Share-based Payments.

1. On July 1, 2016, Tools Company granted share options to key employees for the purchase of 20,000 of the company's ordinary share capital at P25 per share. Based on option-pricing model used by the company, the fair value of each share option on this date was P9. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning July 1, 2018 by grantees still in the employ of the company. The market price of Tools' ordinary share was P33 per share at the date of grant. No share options were terminated during the year. How much should Tools charge to compensations expense for the year ended December 31, 2016?

2. On January 1, 2018, Permission to Dance Inc. grants to an employee the right to choose either 1,000 phantom shares (i.e. a right to a cash payment equal to the fair value of 1,000 shares) or 1,200 shares with a par value of P10 per share. The grant is conditional upon the completion of three years' service. If the employee chooses the share alternative, the shares must be held for three years after the vesting date. At the date of grant, the entity's share price is P50 per share. At the end of year 2018, 2019 and 2020, the share price is P52, P55 and P60, respectively. The entity does not expect to pay dividends in the next three years. After taking into account the effects of the post-vesting transfer restrictions, the entity estimates that the grant date fair value of the share alternative is P48 per share. If the employee has chosen the cash alternative, the amount to be paid at the end of 2020 should be