Question
I need help ASAP please. this question is graded. Thankyou in advance. Free Company offers all its 10,000 employees the opportunity to participate in an
I need help ASAP please. this question is graded. Thankyou in advance.
Free Company offers all its 10,000 employees the opportunity to participate in an employee share-purchase plan. Under the terms of the plan, the employees are entitled to purchase 100 ordinary shares (par value $1 per share) at a 20% discount. The purchase price must be paid immediately upon acceptance of the offer. In total, 8,500 employees accept the offer, and each employee purchases on average 80 shares at $22 per share (market price $27.50). Under IFRS, Free Company will record:
Select one:
a.
no compensation expense since the plan is used to raise capital, not compensate employees.
b.
compensation expense of $5,500,000
c.
compensation expense of $18,700,000
d.
compensation expense of $3,740,000
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