Longreach Ltd grants 100 options to each of its 50 employees on 1 July 2009. Each grant is conditional on the employee working for the company for 3 years. The fair value of each option at grant date is $15.
The following information is available:

What is the employee benefits expense of Longreach Ltd related to this share option for the year ended 30 June 2010?
A) $18 667;
B) 20 000;
C) $26 667;
D) $56 000;
E) $60 000

Question

Longreach Ltd grants 100 options to each of its 50 employees on 1 July 2009. Each grant is conditional on the employee working for the company for 3 years. The fair value of each option at grant date is $15.
The following information is available:

What is the employee benefits expense of Longreach Ltd related to this share option for the year ended 30 June 2010?
A) $18 667; 
B) 20 000; 
C) $26 667; 
D) $56 000; 
E) $60 000

Quizplus · Accepted Answer

The Answer of Longreach Ltd grants 100 options to each of its 50 employees on 1 July 2009. Each grant is conditional on the employee working for the company for 3 years. The fair value of each option at grant date is $15.
The following information is available:

What is the employee benefits expense of Longreach Ltd related to this share option for the year ended 30 June 2010?
A) $18 667; 
B) 20 000; 
C) $26 667; 
D) $56 000; 
E) $60 000

Longreach Ltd Grants 100 Options to Each of Its 50