E. On January 2, 2018, the shareholders of Pau Company approved a plan that grants the company's four executives options to purchase 2,000 shares each of the company's P50 par value ordinary shares. Theoptionsare granted on January 2, 2018 and may be exercised any timefromJanuary 1, 2020 to December 31, 2022.

The options price per share is P60 and the market price of each ordinary share was P90 on January 2, 2018;P96 on December 31, 2018 and P100on December 31, 2019.

Required:

a. Entriesduring 2018 and 2019 assuming no executiveleft the company during the vesting period.

b. Assuming that the options were exercised on June 30 2020 when the market price of an ordinary share is P105, entries to record the said transaction.

F. On December 31, 2018, Pau Company issued 2,000 share options to each of the five key executives that will vest once revenues reach P100 million a year until December 31, 2021. The option expire on January 1, 2022. The employee must still be in the employ of the company at the time the share options vest. Based on the pricing model used by Pau Company, the market value of the option on the date of grant is P30.

At the end of 2019, it is expected that none of the executives who have been granted the share options will leave the company until 2022. It is also estimated that revenue of P100 million will be reached by the year 2021.

Required:

a. Entry to recordtransaction at the endof 2021.

G. On January 1, 2018, Mari Company granted 100 share options to each of its500 employees for the purchase of the company's ordinary share capital at P120 per share. The options are exercisableby employees who are in the employ of the company until the exercise of the options. The share options will vest as follows:

At the end of 2018, if earnings increase by 15%

At the end of 2019, if earnings over two years (2018 and 2019) increase by

an average of 12%

At the end of 2020, if earnings over three years (2018, 2019, and 2020) increase

by an average of 10%.

On January 1, 2018, the fair value of each option is P24.

Actual and estimate of the entity's earnings are as follows:

End of 2018: actual, 12%; estimated earnings in 2019, 12%.

End of 2019: actual, 10%; estimated earnings in 2020, 8%

End of 2020: actual, 11%.

Actual and estimate of the employees who leave the company are as follows:

2018: 20 employees left, additional employees expected to leave, 40

2019: 15 employees left, additional employees expected to leave, 20

2020: 16 employees left.

'

Required:

Entries to record transactions, year 2018, 2019 and 2020.