What is the compensation expense for celtics company

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Reference no: EM132719954

Problem 1: On January 1, 2017, Celtics Company granted to a senior officer 10,000 share options conditional upon the executive remaining in the entity's employ until December 31, 2019. However, the share options cannot be exercised unless the share price has increased from P50 on January 1, 2017 to above P65 on December 31, 2019. If the share price is above P65 on December 31, 2019, the share options can be exercised at any time during the next 5 years. The entity applied a binomial option pricing model and estimated that the fair value of the share option with this market condition on the grant date is P24. What is the compensation expense for 2017?

Reference no: EM132719954

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