Magnetic$-$Optical Corporation offers a varlety of share$-$based compensation plans to employees. Under Its restricted stock unit plan, the company on January $1,2024,$ granted restricted stock units $($RSUs$)$ representing $20$ million of its $$1$ par common shares to various division managers.

The shares are subject to forfelture if employment is terminated within three years.

The common shares have a market price of $$6\mathrm{.}00$ per share on the grant date.

Management's policy is to estimate forfeltures.

Required:

Determine the total compensation cost pertaIning to the RSUs.

Prepare the appropriate Journal entry to record the RSUs on January $1,2024.$

Prepare the approprlate Journal entry to record compensation expense on December $31,2024.$

Suppose Magnetic$-$Optical expected a $10\%$ forfelture rate on the RSUs prior to vesting. Determine the total compensation cost.

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2$ and $3$

Rut$4$

Prepare the appropriate journal entry to record the RSUs on January $1,2024.$

Prepare the appropriate journal entry to necord compensation expense on December $31,2024.$

Note: If no entry is required for a transactien$/$event$.$ ed ect. Wo joum el entry required in the first account fel milions $($i$.$e$,10,000,000$ should be entercd es $10).$

Journal entry worksheet

$2$

Recond the awierd of restricted shares on January $1,2024.$