At the beginning of year 1, Perusahaan Pemuda Sdn Bhd grants 50 share options of its 120 employees, conditional on the employees remaining in the employment of the company over the next 12 years. The company estimated that the fair value of the option on the grant date is $12.

Based on a weighted average probability, Perusahaan Pemuda Sdn Bhd estimates that 15% of its employees will leave during the stated period. It is observed at the end of the 1 year, eight employees have left, and the company estimated that nine will leave during the second year.

By the end of the first year, the companys share price has dropped, and it decides to reprice the share options. Perusahaan Pemuda Sdn Bhd estimates that the fair value of the original share options is $7 and the fair value of the repriced share options is $10. Nine employees leave during year 2.

Required: Calculate the respective remuneration expense, relating to the above, to be recognized at the end of year 1 and year 2.

(20 marks)