The compensation associated with restricted stock units (RSUs) under a stock award plan is:
Multiple choice:
1)The estimated fair value of a share of similar stock times the number of shares represented by the RSUs.
2) The book value of an unrestricted share of the same stock times the number of shares represented by the RSUs.
3) Allocated to expense over the service period which usually is the vesting period.
4) The book value of a share of similar stock times the number of shares represented by the RSUs.
answer: 3) Allocated to expense over the service period which usually is the vesting period.
The compensation associated with restricted stock units (RSUs) under a stock award plan is:
Lance Chips granted restricted stock units (RSUs) representing 40 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $5 per share on the grant date. The total compensation cost pertaining to the restricted stock units is: Multiple Choice $50 million. $5 million. $200 million. $40 million.
Magnetic-Optical Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock unit plan, the company on January 1, 2021, granted restricted stock units (RSUS) representing 18 million of its $1 par common shares to various division managers. The shares are subject to forfeiture if employment is terminated within three years. The common shares have a market price of $9.00 per share on the grant date. Management's policy is to estimate forfeitures. Required: 1. Determine the total...
V. Share-based Compensation (20%) A. Under its restricted stock unit (RSU) plan, Fabulous Footware grants RSUs representing 4 million of its $1 par common shares to certain key executives at January 1, 2021. The shares are subject to forfeiture if employment is terminated within four years. Shares have a current market price of $24 per share. Fabulous has a fiscal year end of December 31. Required for A: Provide necessary journal entries through December 31, 2024. All employees remained employed...
As part of its stock-based compensation package, on January 1, 2018, Weldon Well Supplies granted restricted stock units (RSUs) representing 100,000 $1 par common shares. At exercise, holders of the RSUs are entitled to receive cash or stock equal in value to the market price of those shares at exercise. The RSUs cannot be exercised until the end of 2021 (vesting date) and expire at the end of 2023. The $1 par common shares have a market price of $6.9...
As part of its stock-based compensation package, on January 1, 2018, Weldon Well Supplies granted restricted stock units (RSUs) representing 100,000 $1 par common shares. At exercise, holders of the RSUs are entitled to receive cash or stock equal in value to the market price of those shares at exercise. The RSUs cannot be exercised until the end of 2021 (vesting date) and expire at the end of 2023. The $1 par common shares have a market price of $6.5...
As part of its stock-based compensation package, on January 1, 2018. Weldon Well Supplies granted restricted stock units (RSUS) representing 100,000 $1 par common shares. At exercise, holders of the RSUS are entitled to receive cash or stock equal in value to the market price of those shares at exercise. The RSUS cannot be exercised until the end of 2021 (vesting date) and expire at the end of 2023. The $1 par common shares have a market price of $6.6...
Second Link Services granted restricted stock units (RSUS) representing 23 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. After the recipients of the RSUS satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $24 per share on the grant date. 1. Ignoring taxes, what is the total compensation cost pertaining to the restricted stock units? (Enter your answer in millions...
Exercise 19-3 Restricted stock units; Friend Connection (LO19-1] Friend Connection Inc. Included the following disclosure note in an annual report: Share-Based Compensation (In part) ...compensation expense related to these grants is based on the grant date fair value of the RSUS and is recognized on a straight-line basis over the applicable service period. The following table summarizes the activities for our unvested RSUs for the year ended December 31, 2015: Value Unvested at December 31, 2014 Granted Vested Forfeited Unvested...
Magnetic-Optical Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock unit plan, the company on January 1, 2021, granted restricted stock units (RSUs) representing 7 million of its $1 par common shares to various division managers. The shares are subject to forfeiture if employment is terminated within three years. The common shares have a market price of $27.00 per share on the grant date. Management’s policy is to estimate forfeitures. Required: 1. Determine the...
Decibee, Inc. has a restricted stock award plan for its employees. It grants 220,000 of its $2.00 par common stock to its selected employees on January 1, 2014 with a vesting period of two years. The day after the vesting date, the restricted stock is converted into common stock The market rate of the stock on January 1, 2014 is $7.30 per share Record the general journal entry for January 2, 2016