Please take note of the years. Not the same question as those on chegg

Advanced financial accounting question. Saved to this PC- ayout References Mailings Review View Help Table Design aks Layout Numbers Indent Left lo Right 0 henation Spacing Before Opl After: 8pt Paragraph Position Wrap Bring Send Text Forward Backward Arrange Align Group Selection Pane Rotate Murray Compensation, Inc. (Murray), an SEC registrant that provides payroll processing and benefit administration services to other companies, granted 100,000 "at-the-money employee share options on January 1, 2010. The awards have a grant-date fair value of $6, vest at the end of the third year of service (cliff-vesting), and have an exercise price of $21 Subsequent to the awards being granted, the stock price has fallen significantly. On January 1, 2012, Murray decreased the exercise price on the stock options to $12. This downward adjustment to the exercise price was made in order to ensure that the options continue to provide intended motivational benefit to employees. However, in addition to the reduction in the exercise price, Murray also changed the vesting terms, such that the employees must provide an additional two years of service (awards will now vest on January 1, 2015). Immediately prior to the reduction in the exercise price of the awards, the fair value was $1 per award. After considering the impact of the January 1, 2012, re-pricing, the fair value was $4 per award. Account for the original and the modified award independently so that the remaining original unvested compensation cost and the incremental compensation cost related to the modified award will be recognized from the date of the modification to the end of the extended service period. YEAR ENDED 2012 2013 2014 ORIGINAL AWARD MODIFIED AWARD TOTAL COMPENSATION Combine the original award and the modified award on the basis at the remaining unvested compensation cost from the original and the incremental compensation from the new award should be accounted for together over the modified service period TOTAL COMPENSATION Facu O Advanced financial accounting question. Saved to this PC- ayout References Mailings Review View Help Table Design aks Layout Numbers Indent Left lo Right 0 henation Spacing Before Opl After: 8pt Paragraph Position Wrap Bring Send Text Forward Backward Arrange Align Group Selection Pane Rotate Murray Compensation, Inc. (Murray), an SEC registrant that provides payroll processing and benefit administration services to other companies, granted 100,000 "at-the-money employee share options on January 1, 2010. The awards have a grant-date fair value of $6, vest at the end of the third year of service (cliff-vesting), and have an exercise price of $21 Subsequent to the awards being granted, the stock price has fallen significantly. On January 1, 2012, Murray decreased the exercise price on the stock options to $12. This downward adjustment to the exercise price was made in order to ensure that the options continue to provide intended motivational benefit to employees. However, in addition to the reduction in the exercise price, Murray also changed the vesting terms, such that the employees must provide an additional two years of service (awards will now vest on January 1, 2015). Immediately prior to the reduction in the exercise price of the awards, the fair value was $1 per award. After considering the impact of the January 1, 2012, re-pricing, the fair value was $4 per award. Account for the original and the modified award independently so that the remaining original unvested compensation cost and the incremental compensation cost related to the modified award will be recognized from the date of the modification to the end of the extended service period. YEAR ENDED 2012 2013 2014 ORIGINAL AWARD MODIFIED AWARD TOTAL COMPENSATION Combine the original award and the modified award on the basis at the remaining unvested compensation cost from the original and the incremental compensation from the new award should be accounted for together over the modified service period TOTAL COMPENSATION Facu O