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On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 5 million of its $1 par common shares to key personnel, subject

On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 5 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within two 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 $8.00 per share. Management estimates that 5% of the RSUs are likely to be forfeited due to turnover.

How much compensation expense should be recognized for these RSUs on the income statement for 2021?

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