Question
On January 1, 2016, Cobbler Corporation awarded restricted stock units (RSUs) representing 27.0 million of its $1 par common shares to key personnel, subject to
On January 1, 2016, Cobbler Corporation awarded restricted stock units (RSUs) representing 27.0 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $7.0 per share. |
Required: |
1.
2. | Determine the total compensation cost pertaining to the RSUs. (Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)
Prepare the appropriate journal entries. Record the award of RSUs on January 1, 2016. Record compensation expense on December 31, 2017. Record compensation expense on December 31, 2018. Record the lifting of restrictions on the RSUs and issuing shares at December 31, 2018. |
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