Problem 24-22 (AICPA Adapted) On January 1, 2020, Jeanne Company granted the president compensatory share options to buy 5,000 shares of P100 par value. The options call for a price of P120 per share and are exercisable for four years following the grant date. The president exercised the options on December 31, 2020. The market price of the share was P150 on January 1, 2020 and P180 on December 31, 2020. The fair value of a similar share option with the same terms was P60 on the grant date. 1. What is the compensation expense for 2020? a. 300,000 b. 100,000 150,000 d. 75,000 2. By what net amount should shareholders' equity increase as a result of the grant and exercise of the options? a. 600,000 b. 900,000 c. 500,000 d. 750,000