Answer:
Check the explanation
Explanation:
Stock options: which can be refereed to as the option to purchase the shares of the company at a preset price especially for the employees while it is made available for a specific few.
In solving the question above, we'll be doing some step by step calculation as seen below.
Total Compensation Expense
=> 70 Million * 4 Per Option => 280 Million
B
Compensation Expense On 31st Dec 2016
[(70 * 4 ) / 4] * 1 => 70 Million
1.Employee Compensation Expense A/C Dr. $70 Million
To Employee Stock Option A/C Cr. $ 70 Million
[Being Expenses Recognized]
2. Profit And Loss A/C Dr. $70 Million
To Employee Compensation Expense A/C Cr. $ 70 Million
[ Being Expenses Transferred To Profit Ad Loss A/C]
Answer C
1. Bank A/C Dr. $1890 Million
To Employee Stock Option A./C Cr. $ 1890 Million
[ Being Amount Received On Excersising Of Options]
2. Employee Stock Option A/C Dr $ 2170 Million
To Equity Share Capital A/C Cr $ 70 Million
To Security Premium A/C Cr. $ 2100 Million
[ Being Shares Issued To Employees]