Question: Exercise 8.6 SHARE-BASED PAYMENT WITH A NON-VESTING CONDITION An employee is offered the opportunity to contribute 10% of his annual salary of

Exercise 8.6 ★ ★ ★ SHARE-BASED PAYMENT WITH A NON-VESTING CONDITION An employee is offered the opportunity to contribute 10% of his annual salary of $3000 across the next 2 years to a plan under which he receives share options. The employee’s accumulated contributions to the plan may be used to exercise the options at the end of the 2-year period. The estimated annual expense for this share-based payment arrangement is $200. Required Prepare the necessary journal entry or entries to recognise this arrangement at the end of the fi rst year.

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