se 19-1 LaRue Industries offers a variety of stock-based compensation plans to employees. Under d stock its restricted stock award plan, the company on January 1, 2016, granted 12 million of its Si an; par common shares to various regional managers. The shares are subject to forfeiture employment is terminated within 3 years. The common shares have a market price of $25.50 per share on the grant date. Required: 1. Determine the total compensation cost pertaining to the restricted shares. 2. Prepare the appropriate journal entry to record the award of restricted shares on January 1, 2016. ed 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2016. 4. Suppose LaRue expected a 20% forfeiture rate on the restricted shares prior to vesting. Determine the total compensation cost. 19-2 On January 1, 2016, MEM Corporation granted 75,000 incentive stock options to branch managers, each permitting holders to purchase one share of the company's $1 par common shares within the next 7 years, but not before December 31, 2020 (the vesting date). The exercise price is the market price of the shares on the date of grant, currently $20 per share. The fair value of the options, estimated by an appropriate option pricing model, is $7 per option ons: of Required: 1. Determine the total compensation cost pertaining to the options on January 1, 2016. 2. Prepare the appropriate journal entry to record compensation expense on December 31, 3. Unexpected turnover during 2017 caused the forfeiture of 10% of the stock options. Determine the adjusted compensation cost, and prepare the appropriate journal entry(s) on December 31 2017. The Reserve Company had 606 million shares of common stock outstanding at January 1, 2016. The following activities affected common shares during the year. There are no potential common shares outstanding. 19-3 hares; nds; 2016 Feb. 27 Purchased 18 million shares of treasury stock. Oct. 30 Sold the treasury shares purchased on February 27. Nov. 29 Issued 72 million new shares. Dec. 31 Net income for 2016 is $1,200 million. 2017 19-6 Jan. 14 Declared and issued a 2 for 1 stock split. Dec. 31 Net income for 2017 is $1,200 million. Required: 1. Determine the 2016 EPS 2. Determine the 2017 EPS. 3. At what amount will the 2016 EPS be presented in the 2017 comparative financial statements