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A company offers a variety of share-based compensation plans to employees. Under its restricted stock unit plan, the company on January 1 of the current
A company offers a variety of share-based compensation plans to employees. Under its restricted stock unit plan, the company on January 1 of the current year, granted restricted stock units (RSUs) representing 24 million of its $1 par common shares to various division managers. The shares are subject to forfeiture if employment is terminated within three years. The common shares have a market price of $4.50 per share on the grant date. Managements policy is to estimate forfeitures. Required: Determine the total compensation cost pertaining to the RSUs. Prepare the appropriate journal entry to record the RSUs on January 1 of the current year. Prepare the appropriate journal entry to record compensation expense on December 31 of the current
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