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Dolly Ltd grants 1 , 0 0 0 options to each of its 5 0 employees on 1 July 2 0 1 8 . Each

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:
\table[[Year-ended,Actual employee departures,\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 companys 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
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