The Following Information Relates to Questions
on 1 July

question 15

Multiple Choice

The following information relates to questions
On 1 July 2013 Fantasy Ltd granted 200 options to each of its 100 employees. The share options will vest on 30 June 2015 if the employees remain employed with the company on that date. The share options have a life of four years. The exercise price is $5, which is also Fantasy's share price at the grant date. Fantasy is unable to reliably estimate the fair value of the share options at the grant date.
Fantasy's share price and the number of options exercised are set out below. Share options may only be exercised at year end.
$$\begin{array} { | l | l | l | } \hline \text { Year ended } & \begin{array} { l } \text { Share price } \\\text { at year end }\end{array} & \begin{array} { l } \text { Number of aptions } \\\text { exercised at year end }\end{array} \\\hline \text { 30 June } 2014 & \$ 6 & - \\\hline \text { 30 June } 2015 & \$ 7 & - \\\hline \text { 30 June } 2016 & \$ 8 & 7,800 \\\hline \text { 30 June } 2017 & \$ 9 & 10,000\\\hline\end{array}$$
-The cumulative remuneration expense to be recognised by Fantasy as at 30 June 2015 is:

• A) $7800
• B) $17 800
• C) $35 600
• D) $124 600

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Definitions:

Sperm Production

The biological process of producing sperm cells in the male reproductive organs, particularly in the testicles, essential for sexual reproduction.

Penis Size

A measure of the length and girth of a male's genital organ, often a subject of various cultural perceptions and personal concerns.

Heredity

The transmission of genetic traits and characteristics from parents to offspring.

Corpora Cavernosa

Corpora Cavernosa are two columns of sponge-like tissue found in the penis that fill with blood during an erection, contributing to its rigidity.