On 1 July 2012 Lancashire Ltd Grants 100 Share Options

Multiple Choice

On 1 July 2012 Lancashire Ltd grants 100 share options to each of its 50 employees conditional upon the employee working for the entity for the next 3 years.On the same date,the entity estimates the fair value of each share option at $15.Based on probability estimates,15 employees are expected to leave the entity in one year and another 5 employees in two years.Actual resignation for the year ending 2013 was 12 employees and the fair value of the option is $12 on 30 June 2014. In accordance with AASB 2,what is the cumulative remuneration expense (related to the share option issue) as at 30 June 2011?

A) $24 000
B) $26 400
C) $33 000
D) $45 000