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

---

Definitions:

Ice Caps

Large areas of ice that cover less than 50,000 square kilometers, generally found at high latitudes or elevations and differing from ice sheets.

Impact Craters

Depressions on the surface of a planet or moon created by the collision with another celestial body.

Tectonic Activity

The movement and interaction of Earth's lithospheric plates, which can cause earthquakes, volcanic eruptions, and the formation of mountains.

Volcanic Activity

The process of magma rising to the Earth's surface, which can lead to eruptions, forming volcanoes and lava flows.