Notia Ltd,under an Equity-Based Remuneration Plan,grants 5 Senior Executives the Option

question 12

Multiple Choice

Notia Ltd,under an equity-based remuneration plan,grants 5 senior executives the option of buying shares at $4 per share.At the date of granting the option the shares have a market value of $5.00 each.One executive exercises the right to buy 2000 shares on l January 2010.In principle,the basic accounting entry for this transaction would be:

• A) debit bank $10 000, credit share capital $10 000
• B) debit remuneration expense $2000, debit bank $8000, credit share capital $10 000
• C) debit bank $8000, debit general reserve $2000, credit share capital $10 000
• D) none of the above

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The regard for one's own well-being and happiness, often emphasizing the importance of caring for oneself.

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