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Question - On January 1, 2020, M Co. issued 200 share options to each of its 10 executive officers. The options vest at the end of a 6-year period. On the date of grant, each share option had a fair value of P 15. M expects that all 2,000 options will vest. After the 6 year period, all executives are still in the employ of M Co. and 5 executives exercised their option and purchased the shares for P 20 each. The par value of each share is P 15. How much is credited to the share premium account if 5 of the executives exercised their share options?
a. P35,000
b. P20,000
c. P5,000
d. P0
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