Q2 Chapter 16-1 test restricted stock compensation plan On January 1, 2014, Skidmore Company issues 3,000 shares of restricted stock to its CEO, Rail Stalker. Skidmore's stock has a fair value of $40 per share on January 1, 2014 Additional information is as follows. 1. The service period related to the restricted stock is five years. 2. Vesting occurs if Stalker stays with the company for a five-year period. 3. The par value of the stock is $1 per share. Skidmore makes the following entry on the grant date (January 1, 2014) Record the journal entry at December 31, 2014, Skidmore records compensation expense. Assume that Stalker leaves on February 3, 2016 (before any expense has been recorded during 2016). The entry to record this forfeiture is as follows