Part A

On 1 January 2019, Company ARO issued 1,000 restricted shares to its CEO. ARO'sshare price was $19 on that day.

Vesting occurs if the CEO remains in employment with ARO for four years.

Required:Prepare the journal entries for ARO for the year ended 31 December 2019.

Part B.

In the first three years of its operation, Company COR reported profit before tax of $70,000 in each of 2017, 2018 and 2019. However, for tax purposes, COR has taxable income of $30,000 in 2017, $80,000 in 2018 and $100,000 in 2019. Assume a tax rate of 16% applies.

Required:Prepare the journal entries for COR in 2017, 2018 and 2019.