Question
On January 1,2020, M Co. issued 200 share options to each of its 10 executive officers. The options vest at the end of a 6-year
On January 1,2020, M Co. issued 200 share options to each of its 10 executive officers. The options vest at the end of a 6-year period. On the date of grant, each share option had a fair value of P 15. M expects that all 2,000 options will vest. After the 6 year period, all executives are still in the employ of M Co. and 5 executives exercised their option and purchased the shares for P 20 each. The par value of each share is P 15.How much is credited to the share premium account if 5 of the executives exercised their share options?
. Single choice.
P 35,000
P 20,000
P 5,000
0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started