Homework Answers
Answer:
1.
Compensation cost = optiond granted x fair value
=30 million x 4
=120 million
2.
| Date | Particulars | Debit ($) | Credit ($) |
| 31-Dec-2021 | Compensation expense (120/3) | 40 million | |
| capital | 40 million | ||
| (To compensation expense) |
3.
| Date | Particulars | Debit ($) | Credit ($) |
| 31-Dec-2022 | compensation expense ((120 x 95% x 2/3)-40) | 36 million | |
| capital | 36 million | ||
| 31-Dec-2023 | compensation expense ((120 x 95% x 3/3)-40-36) | 38 million | |
| capital | 38 million | ||
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