Question: INTERMEDIATE ACCOUNTING 2 CHAPTER 12 SHARE-BASED PAYMENTS (PART 1) On February 1, 20x1, Seattle Grace Co. offered its key employees share options that enable them

INTERMEDIATE ACCOUNTING 2

CHAPTER 12 SHARE-BASED PAYMENTS (PART 1)

On February 1, 20x1, Seattle Grace Co. offered its key employees share options that enable them to acquire Seattle Grace shares for $320. The shares are selling at P480. On February 5, 20x1, the key employees counter-offered an exercise price of P280 which was accepted by the board on February 6, 20x1. The share options were approved by the shareholders on a general meeting on April 1, 20x1. The key employees received the share options on May 1, 20x1 and are to be exercised on before December 31, 20x1. Information on the fair value of the share options is shown below: 1-Feb 160 1-Apr 166 5-Feb 162 1-May 168 6-Feb 164 What amount of fair value is assigned to the share options? a. 160 c. 166 b. 164 d. 168

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