Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Magnetic-Optical Corporation offers a varlety of share-based compensation plans to employees. Under its restricted stock unit plan, the company on January 1, 2021, granted restricted
Magnetic-Optical Corporation offers a varlety 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 8 million of its $1 par common shares to varlous division managers. The shares are subject to forfelture if employment is terminated within three years. The common shares have a market price of $12.00 per share on the grant date. Management's policy is to estimate forfeltures. Required: 1. Determine the total compensation cost pertaining to the RSUs. 2. Prepare the approprlate Journal entry to record the RSUs on January 1,2021. 3. Prepare the approprlate Journal entry to record compensation expense on December 31, 2021. 4. 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. Determine the total compensation cost pertaining to the RSUs. (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started