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Problem - On July 1, 2020, RMBP Company granted share options to key employees for the purchase of 20,000 of the company's ordinary share capital at P25 per share. Based on an option-sharing guide used by the company, the fair value of each share option on this date was P9. The option are Intended to compensate the employees for the next two years. The options are exercisable within a four-year period beginning July 1, 2022 by grantees still in the employ of the company. The market price of RMBP Company's ordinary share was P33 per share at the date of grant: No share options were terminated during the year. Compute how much should RMBP Company charge to employee benefit expense for the year 2020.
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