On 1 July 2021 Pearl Pty Ltd Granted 800 Share

Multiple Choice

On 1 July 2021 Pearl Pty Ltd granted 800 share options with an exercise price of $35 to the Finance Director, conditional on the Finance Director remaining in employment with the company until 30 June 2024. The fair value of Pearl's shares at that time were assessed to be $40. The exercise price will drop to $30 if Pearl's earnings increase by an average of 8% per year over the three year period. On 1 July 2021 the estimated fair value of the share options with an exercise price of $35 is $10 per option, and if the exercise price is $30, the estimated fair value of the options is $12 per option. During the year ended 30 June 2022 Pearl's earnings increased by 10% and they are expected to continue to increase at this rate over the next two years.
During the year ended 30 June 2023 Pearl's earnings increased by 9% and Pearl management continued to expect that the earnings target would be achieved.
During the year ended 30 June 2024 Pearl's earnings increased by only 2%. At 30 June 2024 the share price is $23.
The remuneration expense to be recognised for the year ended 30 June 2022 is:

A) $2667.
B) $3200.
C) $8000.
D) $9600.