GONZALES,

AIRA JAIMEE S.
BSA3
PROBLEM
5

Compensation Cumulative
Year Calculation Expense for Compensation
Period Expense
No. of No. of
FV Year
EMP SO
1 20 80 200 0.33 106,667 106,667
2 20 85 300 0.67 233,333 340,000
3 20 86 300 1.00 176,000 516,000

1. Compensation expense for Year 1 106,667 B

2. Compensation expense for Year 2 233,333 C

3. Compensation expense for Year 3 176,000 B

4. Cumulative compensation expense for years 1, 2, and 3
516,000 D

5. Share options outstanding at the end of year 2
340,000 D


GONZALES, AIRA JAIMEE S.
BSA3

PROBLEM
6

Compensation Cumulative
Year Calculation Expense for Compensation
Period Expense
No. of No. of
FV % Year
EMP SO
1 30 100 10 90% 0.33 9,000 9,000
2 30 100 10 70% 0.67 5,000 14,000
3 -14,000 -

1. Compensation expense for Year 1 9,000 A

2. Compensation expense for Year 2 5,000 C

3. Compensation expense for Year 3 0 D


GONZALES, AIRA JAIMEE S.
BSA3
PROBLEM
7

Year Calculation Expense Liability

(400-64 emp.) x 100 SARs x 10.40 x
1
1/3 116,480 116,480
(400-78 emp.) x 100 SARs x 11.30 x
2
2/3 - 116,480 126,093 242,573

(400-76-170 emp.) x 100 SARs x 14.20

- 242,573 = (23,893)
3
163,107 218,680
+ 170 emp. x 100 SARs x 11.00 =
187,000
(154 - 90 emp.) x 100 SARs x 16.80 -
218,680 = (111,160)
4
31,040 107,520
+ 90 emp. x 100 SARs x 15.80 =
142,200
0 - 107,520 = (107,520)

5 + 64 emp. x 100 SARs x 16.90 = -
640
108,160