Problem 1 On January 1, 2020, ABC Corporation granted share options to its employees with a fair value of P4,500,000. The options vest in three years and are exercisable starting January 1, 2023 until Dec. 31, 2023. On December 31, 2020, it was estimated that 5% of the employees will leave the Company. This estimate was revised to 6% during the year 2021. On December 31, 2022, it was determined that 80% of the employees remained in the company. What is the amount charged to compensation expense in 2022?

problem 2 ABC Company was incorporated on January 1,2021. The following are the ordinary share transactions during the year:

Jan. 1 number of shares authorized 80,000 Feb. 2 number of shares issued 60,000 June 1 number of shares reacquired but not retired 5,000 Dec 1 2 for 1 share split

What is the number of ABC Corp.s ordinary share outstanding at December 31, 2020?

PROBLEM 3 The ABC Company has determined that its taxable income for the year 2021 is P3,000,000. The following related facts were gathered (Income tax rate for current and future years is 30%): Cumulative temporary differences, 12/31/2021 Taxable temporary differences- P1,480,000 Deductible temporary differences- P750,000 Permanent differences: Non-taxable revenue- P200,000 Non-deductible expenses- P600,000 Deferred tax asset, December 31, 2020- P150,000 Deferred tax liability, December 31, 2020- P300,000 How much is the total income tax expense (current and deferred) for the year 2021?

PROBLEM 4 On December 31, 2021, ABC Co. was indebted to XYZ Street Company on a P2M, 10% note. Only interest had been paid to date. Due to its financial difficulties ABC has negotiated a restructuring of its notes payable. The parties agree that ABC would settle the debt on the following terms: Settle one half of the note by transferring land with a recorded value of P800,000, and a fair value of P900,000. Settle one fourth of the note by transferring 200,000 shares of P1 par ordinary shares with a fair value of P1.80 per share. Modify the terms of the remaining one fourth of the note by reducing the interest to 5%, extend the due date three years from the date of restructuring and reducing the principal to P300,000.

Total gains on the settlement of debt to be recognized in profit or loss: