Recording Entries for Restricted Stock Unit Plan with Estimated Forfeitures

On December $31$ of Year $1,$ Mars Inc. approved a restricted stock unit plan to be awarded to executives. The

Each restricted stock unit is equivalent to one share of $$1$ par value, common stock of Mars Inc.

Restricted stock units vest three years after the date of grant, subject to forfeiture if employment is terminated prior to the end of the vesting period.

Shares are distributed after the vesting period if the employee is still employed by the company.

On December $31$ of Year $1,39,000$ restricted stock units were granted to key employees under this plan wher will be forfeited and it is the company's policy to estimate forfeitures.

Required

a$.$ Compute the total amount of compensation cost for the restricted stock unit plan.

b$.$ Prepare the journal entry on the date of grant, December $31$ of Year $1.$

c$.$ Prepare the journal entry on December $31$ of Year $2.$

d$.$ Prepare the journal entry on December $31$ of Year $3.$ At that time, the company adjusts its estimate of forfeitures to $10\%.$

e$.$ Prepare the journal entries on December $31$ of Year $4$ to record $(1)$ compensation expense and $(2)$ distribution of shares, assuming actual forfeitures of $3,120$ shares in Year $4.$

Note: If a journal entry isn't required on any of the dates shown, select $"$N$/$A$-$debit" and $"$N$/$A $-$ credit" as the acc

a$.$ Total amount of compensation cos