Share Options

A. On January 2, 2018, the shareholders ofMari Company approved a planthat grantsthe company's four executives options to purchase 2,000 shares each of the company's P50 par valueordinary share. The options are grantedon January 2, 2018 and may be exercisedanytimefrom January 1, 2020 to December 31, 2021. Based onan option-pricing model used by the enterprise, the fair value of the option on January 2, 2018 is P35. The option price per share is P60 and themarket price of the ordinary shares on January 2, 2018 is P90 per share. At the end of 2018, it was expectedthat all four executiveswould stay until the end of 2019, thus, all optionswere expected to vest. All options vested and were exercised on December 31, 2020.

Required: Entries to record the above transactions.

If during the vesting period, some options are cancelled due to non-completion of the minimum required service period, as in this example, the total value of the remaining options that has not been charged to expense shall be recognized as expense over the remaining number of years in the vesting period.