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:

Radioactive Decay

The process by which an unstable atomic nucleus loses energy by emitting radiation, leading to a change in the number and/or arrangement of its protons and neutrons.

Conduction

The direct transfer of heat or electricity through a substance when there is a temperature or electrical potential difference.

Thermal Energy

The internal energy present in a system due to the motion of its atoms or molecules, often perceived as heat.

Felsic Magma

Magma that is high in silica and light in color, typically associated with explosive volcanic eruptions.