Question

Facebook 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, 2017:

	Number of Shares (in thousands)						Weighted Average Grant Date Fair Value
Unvested at December 31, 2016			98,586					$	82.99
Granted			36,741						147.28
Vested			(43,176	)					83.74
Forfeited			(10,937	)					91.76
Unvested at December 31, 2017			81,214					$	110.49

Required:

1. Assuming a four-year vesting period, how much compensation expense did Facebook report in the year ended December 31, 2018, for the restricted stock units granted during the year ended December 31, 2017?
2. Based on the information provided in the disclosure note, prepare the journal entry that summarizes the vesting of RSUs during the year ended December 31, 2017. (Facebook’s common shares have a par amount per share of $0.000006.)

Answer 1

Pageo1 compute the tota epense repeted ended dec 3l, Qolu intoxpaation F fothe Required did fate book epet inthe ended ) compense december 21 ol8 195urmtngouaen eod Compute the total Compensation cost of Rsug esing ped Total CompensaHon cost Rsug = fair markel value share x no. d shawe aworded 4.28 x 36741000 1 = 5u11214y 80 compensation RSUvesting peiod total Cost Epense allocated eath 5५|21५480 135280 3626 -Expense atlocated eash ear

ta jourinal anty vstnRsu dwng P: ০2 that Summasites the fhe Occ 31,2014 ended Date 3- Dec - 014 Accounh paid tn capital estaictedd stock 36I5558 2 40 4316000 83.4 debit - 3615558240 Common stock 259.05 (4316000 x o.000006) 5.05 Coedit paid in capital pan = 3615558240 - 259,05 ex ce 361555 7981 Accounts 3-Dec- Pad in capi tal nestricted stuk pate Debit tedit 365558240 stock Common 259.05 paid in capital- Exce d par 361555498