Ultimate Company granted 100 share options to each of its 300 employees on January 2, 2018. The option plan allows the employees to purchase P100 par value ordinary share at P180 per share. The option pricing model used by the company indicated that the fair value of each option on January 2, 2020 was P30. The plan provides that the employees must be employed by the company for the next three years and that the options will expire at the end of 2021.

At January 2, 2018, it was estimated that 20% of the employees will leave during the next three years. Actual and revised estimate of employees leaving the company during 2018, 2019 and 2020 are as follows:
2018 – 10 employees left; revised estimate is 10% of the remaining options
2019 – 15 employees left; revised estimate is 12% of the remaining options
2020 – 12 employees left

During 2021, 150 of the employees exercised their options while the remaining employees allowed their options to lapse.

How much is the compensation expense in 2019?

Answer rating: 100% (QA)

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