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Question Part 1 Continuing with same facts: ABC grants 1,000 new shares of $5 par common stock to each of five executives on January 1,

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Part 1

Continuing with same facts: ABC grants 1,000 new shares of $5 par common stock to each of five executives on January 1, 2011. The 5,000 shares have a total fair value of $87,000 at grant. The shares will vest on December 31, 2013 after three years (not prorated) of continued employment with ABC. ABC expects four employees to fulfill the vesting requirements, and no other restrictions apply. If all five executives remain with the company through all of 2013, what would the compensation expense be for 2013?

Part 2

Continuing from the previous example ABC grants 1,000 new shares of $5 par common stock to each of five executives on January 1, 2011. The 5,000 shares have a total fair value of $87,000 at grant. The shares will vest on December 31, 2013 after three years (not prorated) of continued employment with ABC. ABC expects four employees to fulfill the vesting requirements, and no other restrictions apply. If all five executives remain with the company through all of 2013, an entry of the following form is recorded:

DR APIC-Restricted Stock xxxx

CR Common Stock yyyy

CR APIC-Common zzzz

Enter the amount credited to APIC-Common

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