On January 1, 2018, Christmas Present Morty Company granted to an employee the right to choose either shares or cash payment. The choices are as follows:

• Share alternative: equal to 30,000 shares with a par value of P40.
• Cash alternative: cash payment equal to the market value of 35,000 shares.

The grant is conditional upon completion of three years' service. On grant date (January 1, 2018), the share price is P42. After taking into account the effect of vesting restrictions, Christmas Present Morty has estimated that the fair value of the share alternative to be P60.

The following are the other relevant share prices:

• December 31, 2018 - P45
• December 31, 2019 - P60
• December 31, 2020 - P75

Note: Round off amounts to the nearest peso.

Based on the information, answer the following:

• What is the total fair value of the equity component on January 1, 2018 as a result of the share and cash alternatives?
• What is the compensation expense for the year ended December 31, 2018?
• What is the compensation expense for the year ended December 31, 2019?
• What is the compensation expense for the year ended December 31, 2020?
• If the employee selected the cash alternative, what is the share premium to be recognized on December 31, 2020?
• If the employee selected the share alternative, what is the share premium to be credited from the issuance of shares?