What the journal entry on january will include

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Problem 1: On January 1, 20x1, Demetria Co. grants 1,000 share options to each of its 100 key employees conditional upon each employee remaining in ABC's employ over the next three years. ABC estimates that the fair value of each share option is ?15.On the basis of a weighted average probability, ABC Co. estimates on January 1, 20x1 that 20 per cent of employees will leave during the three-year period and therefore forfeit their rights to the share options. Twenty (20) employees actually left the company during the three-year period. Fifteen (15) employees left in 20x1 and the other five (5) left in 20x3. The journal entry on January 1, 20x1 will include

a) Debit to Salaries Expense - share options of 400,000
b) Credit to Share Premium - Share options outstanding of 400,000
c) Memorandum entry only
d) Credit to Salaries Expense - share options of 400,000

Reference no: EM132765805

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