ABC grants 1,000 new shares of $5 par common stock to each of five executives on January 1, 2011. The 5,000 shares have a total fair value of $87,000 at grant. The shares will vest on December 31, 2013 after three years (not prorated) of continued employment with ABC. ABC expects four employees to fulfill the vesting requirements, and no other restrictions apply.

A). What is the amount of compensation expense at 12/31/11 (note it is the same for 2012 also)?

B). If all five executives leave unexpectedly on 1/1/13 (before the options vest), ABC would prepare a journal entry of the following form:

DR APIC-Restricted Stock xxx

CR Compensation Expense xxx

What is the amount in this journal entry?

C). If all five executives remain with the company through all of 2013, what would the compensation expense be for 2013?

D). If all five executives remain with the company through all of 2013, an entry of the following form is recorded:

DR APIC-Restricted Stock xxxx

CR Common Stock yyyy

CR APIC-Common zzzz

What is the amount credited to APIC-Common?