Mission Beach 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:
$$\begin{array} { | l | l | l | }
\hline \text { Year ending 30 June } & \begin{array} { l }
\text { Estimate of departures before the } \
\text { option vests }
\end{array} & \begin{array} { l }
\text { Fair value of option at end of } \
\text { period }
\end{array} \
\hline 2010 & 10 & \$ 14 \
\hline 2011 & 12 & \$ 18 \
\hline 2012 & 14 \text { (actual) } & \$ 20 \
\hline
\end{array}$$
What is the employee benefits expense of Mission Beach Ltd related to this share option for the year ended 30 June 2011?
A) $18 000
B) $20 000
C) $24 000
D) $26 933

Question

Mission Beach 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:
$$\begin{array} { | l | l | l | } 
\hline \text { Year ending 30 June } & \begin{array} { l } 
\text { Estimate of departures before the } \
\text { option vests }
\end{array} & \begin{array} { l } 
\text { Fair value of option at end of } \
\text { period }
\end{array} \
\hline 2010 & 10 & \$ 14 \
\hline 2011 & 12 & \$ 18 \
\hline 2012 & 14 \text { (actual) } & \$ 20 \
\hline
\end{array}$$
What is the employee benefits expense of Mission Beach Ltd related to this share option for the year ended 30 June 2011?
A) $18 000
B) $20 000
C) $24 000
D) $26 933

Quizplus · Accepted Answer

The Answer of Mission Beach 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:
$$\begin{array} { | l | l | l | } 
\hline \text { Year ending 30 June } & \begin{array} { l } 
\text { Estimate of departures before the } \
\text { option vests }
\end{array} & \begin{array} { l } 
\text { Fair value of option at end of } \
\text { period }
\end{array} \
\hline 2010 & 10 & \$ 14 \
\hline 2011 & 12 & \$ 18 \
\hline 2012 & 14 \text { (actual) } & \$ 20 \
\hline
\end{array}$$
What is the employee benefits expense of Mission Beach Ltd related to this share option for the year ended 30 June 2011?
A) $18 000
B) $20 000
C) $24 000
D) $26 933

Mission Beach Ltd Grants 100 Options to Each of Its