On December $31$ of Year $1,$ Mars Inc. approved a restricted stock unit plan to be awarded to executives. The plan included the following general terms.

$$ Each restricted stock unit is equivalent to one share of $$1$ par value, common stock of Mars Inc.

$$ Restricted stock units vest three years after the date of grant, subject to forfeiture if employment is

terminated prior to the end of the vesting period.

$$ Shares are distributed after the vesting period if the employee is still employed by the company.

On December $31$ of Year $1,30,000$ restricted stock units were granted to key employees under this plan when the market price of the common stock was $$25$ per share. The company estimates that $15\%$ of the restricted stock units will be forfeited and it is the company$$s policy to estimate forfeitures.

Required

a$.$ Compute the total amount of compensation cost for the restricted stock unit plan.

b$.$ Prepare the journal entry on the date of grant, December $31$ of Year $1.$

c$.$ Prepare the journal entry on December $31$ of Year $2.$

d$.$ Prepare the journal entry on December $31$ of Year $3.$ At that time, the company adjusts its estimate of

forfeitures to $10\%.$

e$.$ Prepare the journal entries on December $31$ of Year $4$ to record $(1)$ compensation expense and $(2)$ distribution

of shares, assuming actual forfeitures of $2,400$ shares in Year $4$