Magnetic-Optical Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock unit plan, the company on January 1, 2021, granted restricted stock units (RSUs) representing 7 million of its $1 par common shares to various division managers. The shares are subject to forfeiture if employment is terminated within three years. The common shares have a market price of $27.00 per share on the grant date. Managements policy is to estimate forfeitures. Required:

1. Determine the total compensation cost pertaining to the RSUs. 2. Prepare the appropriate journal entry to record the RSUs on January 1, 2021. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021. 4. Suppose Magnetic-Optical expected a 10% forfeiture rate on the RSUs prior to vesting. Determine the total compensation cost.

Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 Determine the total compensation cost pertaining to the RSUS. (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).) Total compensation cost $ 189 million Reg 1 Reg 2 and 3 Reg 4 Prepare the appropriate journal entries. (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 Credit Date General Journal January 01, 2021 Compensation expense Paid-in capital - restricted stock Debit 63 1 63 2 63 December 31, 202 Compensation expense Paid-in capital - restricted stock 63 > Reg 1 Reg 2 and 3 Reg 4 Suppose Magnetic-Optical expected a 10% forfeiture rate on the RSUs prior to vesting. Determine the total compensation cost. (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Total compensation cost $ 170.0 million