LaRue Industries offers a variety of stock-based compensation plans to employees. Under xercise 19-1 saricted stock ard plan, its restricted stock award plan, the company on January 1, 2016, granted 12 million of its SI par common shares to various regional managers. The shares are subject to forfeiture if employment is terminated within 3 years. The common shares have a market price of $25.50 per share on the grant date Required: 1. Determine the total compensation cost pertaining to the restricted shares. 2. Prepare the appropriate journal entry to record the award of restricted shares on January I, 2016. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2016 shares prior to vesting 4. Suppose laRue expected a 20% forfeiture rate on the restricted he totalco On January 1, 2016, MEM Corporation granted 75.000 incentive stock options to branch share of the company's $1 par common vesting date). The xereise 19-2 managers, each permitting holders to purchase one within the next 7 years, but not before December 31, 2020 (the rfeiture of is the market price of the shares on the date ine the total compensation cost pertaining to the options on January 1, 2016. umover during 2017 caused the forfeiture of 10% of the of grant, currently $20 per share. exereise parue or the options, estimated by an appropriate option pricing model.,is $7 per option Required: 19-2 2. Prepare the appropriate journal entry to record compensation expense on December 31. 2016. inexpested cmpensation cost, and prepare the appropriate journal entry) on December 31, stock options. Determine the rcise 19-3 treasury new shares common shares outstanding. The Reserve Company had 606 million shares of common stock outstanding at January 1, 2016. The following activities affected common shares during the year: There are no potential dividends 2016 Feb. 27 Purchased 18 million shares of treasury stock. Oct. 30 Sold the treasury shares purchased on February 27. Nov. 29 Issued 72 million new shares. Dec. 31 Net income for 2016 is $1,200 million. -14 2017 Jan. 14 Dec. 31 Declared and issued a 2 for 1 stock split. Net income for 2017 is $1,200 million. Required: 1. Determine the 2016 EPS 2. Determine the 2017 EPS 3. At what amount will the 2016 EPS be presented in the 2017 comparative financial statements