years. SUFFUSE estimates that the fair value of each share option employee remaining in SUFFUSE's employ over the next thre options to each of its 100 key employees conditional upon each On January 1,...

Extracted text: years. SUFFUSE estimates that the fair value of each share option employee remaining in SUFFUSE's employ over the next thre options to each of its 100 key employees conditional upon each On January 1, 20x1, SUFFUSE TO FILL Co. grants 1,000 shane Use the following information for the next four questions: Fact pattern: is P30, 3. On the basis of a weighted average probability, SUFFUSE Co. estimates on January 1, 20x1 that 20 per cent of employees (100 x 20% = 20 employees) will leave during the three-year period and therefore forfeit their rights to the share options. During 20x1, 2 employees left. The entity revised its estimate of total employee departures over the three-year period from 20 per cent (20 employees) to 15 per cent (15 employees). During 20x2, additional 3 employees left. The entity revised its estimate of total employee departures over the three-year period from 15 per cent to 12 per cent (12 employees). During 20x3, additional 5 employees left. Hence, a total of 10 employees forfeited their rights to the share options during the three-year period, and a total of 90,000 share options (0 1,000 options per employee) vested at the end of employees 3. Provide all the necessary journal entries. on the basis of a weighted average probability, SUFFUSE Co. stimates on January 1, 20x1 that 20 per cent of employees (100 20% - 20 employees) will leave during the three-year period and therefore forfeit their rights to the share options. No employees have actually left the company during the three- year vesting period. Provide all the necessary journal entries.