Epione, Inc. grants to an employee the right to choose either 1,000 phantom shares or 1,200 shares with a par value of P10 per share. The grant is conditional upon the completion of three years' service. If the employee chooses the share alternative, the shares must be held for three years after vesting date. At grant date, the entity's share price is P50 per share. At the end of years 1, 2 and 3, the share price is P52, P55 and P60, respectively. The entity does not expect to pay dividends in the next three years. After taking into account the effects of the post-vesting transfer restrictions, the entity estimates that the grant date fair value of the share alternative is P48 per share. At the end of year 3, the employee chooses: Scenario 1: The cash alternative Scenario 2: The equity alternative 1. What is the total fair value of the equity component as a result of the share-based payment transaction with settlement alternative? 2. What is the compensation expense in year 1? 3. What is the compensation expense in year 2? 4. What is the compensation expense in year 3? 5. If the employee has chosen the cash alternative, what is the amount to be paid at the end of year 3? 6. If the employee has chosen the share alternative, what is the amount of the increase in share premium