4/13/23, 12:33 AM ACT1205 Online Quiz 14 - Shareholders' Equity: AUDITING AND ASSURANCE PRINCIPLES: CONCEPTS AND APPLICATIONS

ACT1205 Online Quiz 14 - Shareholders' Equity

Due Apr 15 at 11:59pm Points 12 Questions 4
Available Apr 4 at 9am - Apr 15 at 11:59pm Time Limit 60 Minutes

Instructions
Solve the following problems.

You have 60 minutes to complete this quiz.

This is due on or before April 15, 2023 at 11:59PM.

Attempt History
Attempt Time Score
LATEST Attempt 1 60 minutes 9 out of 12

Score for this quiz: 9 out of 12

Submitted Apr 13 at 12:32am
This attempt took 60 minutes.

Question 1 3 / 3 pts

On January 1, 2021, Advise Company granted share options to

10 of its key employees entitling them to acquire P100 par
value shares of the company for two options plus P110 per
share. The share options will vest on December 31, 2023,
provided that the employees remain in the company’s employ
and provided that revenues reach P100 million, the employees
will receive 1,000 options each. If revenues reach P150 million,
the employees will receive 2,000 options each. If revenues
reach P200 million, the employees will receive 3,000 options
each.

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4/13/23, 12:33 AM ACT1205 Online Quiz 14 - Shareholders' Equity: AUDITING AND ASSURANCE PRINCIPLES: CONCEPTS AND APPLICATIONS

The market value of the option on the date of grant is P30. The
company has a steady pattern of 25% increase in revenues
every year over the last 5 years and expects the same pattern
during the vesting period.

In addition, the following information were deemed relevant for

the computation of the compensation expense for each year:

What is the compensation expense to be recognized in

2021?

Correct!
80,000

orrect Answers 80,000 (with margin: 0)

Question 2 3 / 3 pts

What is the compensation expense to be recognized in

2022?

Correct!
280,000

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4/13/23, 12:33 AM ACT1205 Online Quiz 14 - Shareholders' Equity: AUDITING AND ASSURANCE PRINCIPLES: CONCEPTS AND APPLICATIONS

orrect Answers 280,000 (with margin: 0)

Question 3 3 / 3 pts

What is the compensation expense to be recognized in

2023?

Correct!
270,000

orrect Answers 270,000 (with margin: 0)

Question 4 0 / 3 pts

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4/13/23, 12:33 AM ACT1205 Online Quiz 14 - Shareholders' Equity: AUDITING AND ASSURANCE PRINCIPLES: CONCEPTS AND APPLICATIONS

If the five employees exercised their options in 2024, how

much is credited to share premium from the related
issuance of shares?

ou Answered
540,000

orrect Answers 525,000 (with margin: 0)

Quiz Score: 9 out of 12

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