Question
20) On January 1, 2017, Unruly issues 12,500 shares of $2 par restricted stock to a key executive. The market value of unrestricted shares of
20) On January 1, 2017, Unruly issues 12,500 shares of $2 par restricted stock to a key executive. The market value of unrestricted shares of the same stock on the date of issue is $18 and there is a four-year vesting period. On January 1, 2018, the executive leaves and forfeits the restricted stock award. The journal entry to record the forfeiture includes which of the following?
A) credit Deferred Compensation $56,250
B) credit Common Stock $25,000
C) debit Deferred Compensation for $25,000
D) credit Compensation Expense for $56,250
21) Russel permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 10% discount. During July, employees purchased 33,000 shares at a time when the established market price was $26 per share. Teague will record compensation expense associated with July purchases of ________.
A) $0
B) $85,800
C) $772,200
D) $858,000
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