12:484 Search Done FILE_4449 (4 of 6) Problem Share based compensation 1. (points) On January 1, 2021, Crown Co awarded restricted stock units (RSUS) represcuting 21 million of its $2 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSU's satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of S6 per share Required: a. Determine the total compensation cost pertaining to the RSUS b. Prepare the appropriate journal entries related to the RSUs for December 31, 2023. Assume all key personnel still employed by the company throughout 2. (14 points) Under its executive stock option plan, Brown Inc. granted options on common shares within the next nine years, but not before December 31, 2024 (the January vestiny date). The exercise price is the market price of the shares on the date of grant, S13 per share. The fair value of the options, estimated by an appropriate options pricing model, is $7 perciption. Management's policy is to estimate forfeiture. $ Currently no forfeitures are anticipated Required: a. Ignoring taxes, what is the total compensation cost pertaining to the stock options? b. Prepare the journal entry on December 31, 2021. What is the effect on earings in the year after the options are granted to executives! c. Suppose that unexpected turnover curing 2022 caused the forfeiture of 10% of the d. Anotheepare the appropriate journal entry on December 31, 2022 stock options. to 30% of the original stock option. Prepare the appropriate joumal entry on December 31, 2023 and December 31, 2024 12:484 Search Done FILE_4449 (4 of 6) Problem Share based compensation 1. (points) On January 1, 2021, Crown Co awarded restricted stock units (RSUS) represcuting 21 million of its $2 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSU's satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of S6 per share Required: a. Determine the total compensation cost pertaining to the RSUS b. Prepare the appropriate journal entries related to the RSUs for December 31, 2023. Assume all key personnel still employed by the company throughout 2. (14 points) Under its executive stock option plan, Brown Inc. granted options on common shares within the next nine years, but not before December 31, 2024 (the January vestiny date). The exercise price is the market price of the shares on the date of grant, S13 per share. The fair value of the options, estimated by an appropriate options pricing model, is $7 perciption. Management's policy is to estimate forfeiture. $ Currently no forfeitures are anticipated Required: a. Ignoring taxes, what is the total compensation cost pertaining to the stock options? b. Prepare the journal entry on December 31, 2021. What is the effect on earings in the year after the options are granted to executives! c. Suppose that unexpected turnover curing 2022 caused the forfeiture of 10% of the d. Anotheepare the appropriate journal entry on December 31, 2022 stock options. to 30% of the original stock option. Prepare the appropriate joumal entry on December 31, 2023 and December 31, 2024