What amount of compensation expense should be recorded

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Under the executive share option plan, Ariel and Aimee Company granted options on January 1, 2020 that permit executives to purchase 15,000 P100 par ordinary shares within the next eight years but not before December 31, 2022.

Question 1: On January 1, 2020, Megaldon Company had issued executive share options permitting executives to buy 40,000 shares for P25 per share. The vesting schedule is 20% the first year, 30% the second year, and 50% the third year (graded-vesting). Vesting date: December 31, 2020, Amount vesting: 20%, Fair value per option: 10; Vesting date: December 31, 2021, Amount vesting: 30%, Fair value per option: 15; Vesting date: December 31, 2022, Amount vesting: 50%, Fair value per option: 20. Assuming the entity used the straight line method, what amount of compensation expense should be recorded in 2020?

Reference no: EM132723961

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