DELIVIN CORPORATION DATA

On January 1, 2018, DELIVIN Corporation decided and grants share options to each of its 100 employees working in the department of sales.

The share options will vest at the end of 2020, provided that the employees remain in the entitys employ, and provided that the volume of sales of a particular product increase by at least an average of 5% per year.

If the volume of sales of the product increases by an average of between 5% and 10% per year, each employee will receive 100 share options.

If the volume of sales increase by an average of between 10% and 15% each year, each employee will receive 200 share options.

If the volume of sales increase by an average of 15% or more, each employee will receive 300 share options.

Each employee may purchase one P25 par value ordinary share at P35 for each option held and is exercisable up to the end of 2021.

On grant date, the company estimates that the share options have a fair value of P20 per option. It also estimates that the volume of sales of the product will increase by an average of between 10% and 15% per year. The entity also estimates, on the basis of a weighted average probability, that 19% of employees will leave before the end of 2020.

* By the end of 2018, seven employees have left and the entity still expects that a total of 19 employees will leave by the end of 2020. Product sales have increased by 12% and the entity expects this rate to increase over the next two years.

* By the end of 2019, a further six employees have left. The entity now expects only three more employees will leave during 2020. Product sales have increased by 18%. The entity now expects that sales will average 15% or more over the three-year period.

* By the end of 2020, a further two employees have left. The entitys sales have increased by an average of 16% over the three-year period.

69 employees exercised their vested options on June 11, 2021. As of December 31, 2021, there were no additional employees who exercised their vested options.

Analyze the data given and answer the following questions:, provide solution

1. How much is the compensation expense for the year ended December 31, 2018?, December 31, 2019?, December 31, 2020?

2. What is the balance of the outstanding share options at the end of 2019?

3. The entry to record the exercise of share options shall require a credit to Share Premium at:

4. The entry to record the expiration of share options shall require a credit to Share Premium at: