Host Hotels \& Resorts, Inc., reported the following information in its 2008 10-K related to its restricted stock plan.

Restricted Stock During 2008, 2007 and 2006, we recorded compensation expense of approximately \(\$ 2\) million, \(\$ 3\) million and \(\$ 32\) million respectively, related to the restricted stock awards to senior executives. The majority of these awards vested on December 31, 2008. The following table is a summary of the status of our senior executive plans for the three years ended December 31, 2008.

\section*{Required}

a. How do restricted stock and stock options differ? In what respects are they the same?

b. Why do companies impose vesting periods on restricted stock grants?

c. Use the financial statement effects template to record the restricted stock granted to senior executives during 2008. The common stock has a par value of \(\$ 0.01\) per share

d. Use the financial statement effects template to record the 2008 compensation expense related to Host Hotels' restricted stock awards.

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Shares 2008 Fair Value (in millions) (per share) 2007 Shares Fair Value 2006 Snares Fair Value (in millions) (per share) (in millions) (per share) Balance, at beginning of year. 1.5 $ 7 2.4 $19 Granted 0.2 18 - 3.5 16 Vested.. (0.3) 10 (0.2) 24 (1.1) 24 Forfeited/expired (1.3) - (0.7) 8 Balance, at year-end... 0.1 1.5 7 2.4 19 Issued in calendar year... 0.1 15 0.6 25 25 0.7 19