Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Friend Connection Inc. included the following disclosure note in an annual report: Share-Based Compensation (in part) . . . compensation expense related to these grants

Friend Connection Inc. included the following disclosure note in an annual report: Share-Based Compensation (in part) . . . compensation expense related to these grants is based on the grant date fair value of the RSUs and is recognized on a straight-line basis over the applicable service period. The following table summarizes the activities for our unvested RSUs for the year ended December 31, 2015:

Unvested RSUs
Number of Shares (in thousands) Weighted Average Grant Date Fair Value
Unvested at December 31, 2014 116,444 $ 21.72
Granted 55,059 34.00
Vested (49,250 ) 17.30
Forfeited (16,567 ) 25.65
Unvested at December 31, 2015 105,686 $ 29.00

Required:

1. Assuming a four-year vesting period, how much compensation expense did Friend Connection report in the year ended December 31, 2016, for the restricted stock units granted during the year ended December 31, 2015? 2. Based on the information provided in the disclosure note, prepare the journal entry that summarizes the vesting of RSUs during the year ended December 31, 2015. (Friend Connection's common shares have a par amount per share of $0.000006.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

No Nonsense Employee Retention Audit

Authors: Jeff Kortes

1st Edition

0988307014, 978-0988307018

More Books

Students also viewed these Accounting questions

Question

Using Language That Works

Answered: 1 week ago

Question

4. Are my sources relevant?

Answered: 1 week ago