Dolly Ltd grants $1,000$ options to each of its $50$ employees on $1$ July $2018.$ Each grant is conditional on the employee working for the company for the next $3$ years. The fair value of each option at grant date is $$20.$ Dolly Ltd estimates that $16\%$ of its employees will leave during the vesting period. The following table summarises the actual employee departures and revised estimates of employee departures across the vesting period:

$\backslash$table$[[$Year$-$ended,Actual employee departures,$\backslash$table$[[$Revised estimate of FURTHER$],[$departures$]]],[30$ June $2019,2,5],[30$ June $2020,3,3],[30$ June $2021,4,$N$/$A$]]$

By $30$ June $2019$ the company's share price has fallen and it decides to re$-$price the options effective in the next financial year. At this time the fair value of the original options is estimated to be $$11$ and the fair value of the re$-$priced options is estimated to be $$15.$

The remuneration expense that would be recognised by Dolly Ltd for the year ended $30$ Juna $2020$ is:Dolly Ltd grants $1,000$ options to each of its $50$ employees on $1$ July $2018.$ Each grant is conditional on the employee working for the company for the next $3$ years. The fair value of each option at grant date is $$20.$ Dolly Ltd estimates that $16\%$ of its employees will leave during the vesting period. The following table summarises the actual employee departures and revised estimates of employee departures across the vesting period:

Year$-$ended

Actual employee departures

Revised estimate of FURTHER departures

$30$ June $2019$

$2$

$5$

$30$ June $2020$

$3$

$3$

$30$ June $2021$

$4$

N$/$A

By $30$ June $2019$ the company$$s share price has fallen and it decides to re$-$price the options effective in the next financial year. At this time the fair value of the original options is estimated to be $$11$ and the fair value of the re$-$priced options is estimated to be $$15.$

The remuneration expense that would be recognised by Dolly Ltd for the year ended $30$ June $2020$ is:

Question $5$ Select one:

a$.$

$$403,333$

b$.$

$$273,333$

c$.$

$$357,333$

d$.$

$$378,333$

e$.$

$$390,333$