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What amount to be recognized as an expense by thames ltd

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Reference no: EM132822680

Problem 1: Thames Ltd grants 1,000 share options to each of its 90 employees. Each grant is conditional on the employee working for the company for the next two years. The fair value of each option is estimated to be $10 at the grant date and $11.50 at vesting date. The amount to be recognized as an expense by Thames Ltd in year 2 is:

a. $1,150,000

b. $1,000,000

c. $900,000

d. $135,000

Reference no: EM132822680

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