Liverpool Limited Grants 100 Options to Each of Its 50

Multiple Choice

Liverpool limited grants 100 options to each of its 50 employees on 1 July 2009.Each grant is conditional on the employee working for the company for the next 3 years.The fair value of each option at grant date is $15.Liverpool Ltd estimates that 15% of its employees will leave during the vesting period.The following table summarises the actual employee departures and revised estimates of employee departures across the vesting period.
$$\begin{array} { | l | l | l | } \hline \text { Year ending } 30 \text { June } & \text { Actual departures } & \begin{array} { l } \text { Revised estimate of departures } \\\text { before the option vests }\end{array} \\\hline 2010 & 4 & \text { Further } 7 \\\hline 2011 & 4 & \text { Further } 4 \\\hline 2012 & 3 & \text { NA } \\\hline\end{array}$$
By the end of year 2011 the company's share price had fallen and it decides to re-price the options.At this time the fair value of the original options is estimated to be $5 and the fair value of the re-priced options is estimated to be $8.
What is the employee benefits expense of Liverpool Ltd related to this share option for the year ended 30 June 2012?

A) $19 500
B) $22 750
C) $26 500
D) $70 200