Penneshaw 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 Penneshaw Ltd related to this share option for the year ended 30 June 2012?
A) $16 000;
B) $20 000;
C) $21 333;
D) $26 400;
E) None of the given answers

Question

Penneshaw 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 Penneshaw Ltd related to this share option for the year ended 30 June 2012?
A) $16 000; 
B) $20 000; 
C) $21 333; 
D) $26 400; 
E) None of the given answers

Quizplus · Accepted Answer

The Answer of Penneshaw 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 Penneshaw Ltd related to this share option for the year ended 30 June 2012?
A) $16 000; 
B) $20 000; 
C) $21 333; 
D) $26 400; 
E) None of the given answers

Penneshaw Ltd Grants 100 Options to Each of Its 50