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What amount of compensation expense shall be recognized

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On January 1, 20x1, Creek Co. grants 1,000 share options to each of its 180 employees on condition that the employees remain in Creek's employ until the end of 20x3. The exercise price per share option is ?20. The fair value per share option is ?80.

On December 31, 20x1, Creek Co. modifies the share option grant by extending the vesting period to the end of 20x4.

Problem 1. What amount of compensation expense shall be recognized in 20x2?

Reference no: EM132765476

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