Mango Inc. offers a restricted stock award plan to its vice presidents. On January 1, 2024, the corporation granted 10 million of its $5 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market value of $9.90 per share on the date the award is granted. Required: 1.Assume that no shares are forfeited. Determine the total compensation cost pertaining to the restricted shares.

2.Prepare the appropriate journal entries related to the restricted stock through December 31, 2025.