Answer is not 14 million or 140 million.

Exercise 19-23 Record restricted stock; effect on EPS [LO19-1, 19-11] PHN Foods granted 42 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $18 per share on January 1, 2017, the grant date. Required: 1. What journal entry will PHN Foods prepare to record executive compensation regarding these restricted shares at December 31, 2017 and December 31, 2018? 2. When calculating diluted EPS at December 31, 2018, what will be the net increase in the denominator of the EPS fraction if the market price of the common shares averages $18 per share during 2018? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What journal entry will PHN Foods prepare to record executive compensation regarding these restricted shares at December 31, 2017 and December 31, 2018? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) No Debit Credit 1 Date General Journal December 31, 201 Compensation expense Paid-in capitalrestricted stock 252 252 2 252 December 31, 201 Compensation expense Paid-in capitalrestricted stock 252 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 When calculating diluted EPS at December 31, 2018, what will the net increase in the denominator of the EPS fraction if the market price of the common shares averages $18 per share during 2018? (Enter your answer in millions of shares (i.e., 10,000,000 should be entered as 10).) Net increase in the denominator 140 x million shares