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Business, 27.08.2019 21:30 lpierce35

Magnetic-optical corporation offers a variety of share-based compensation plans to employees. under its restricted stock unit plan, the company on january 1, 2018, granted restricted stock units (rsus) representing 17 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 $12.00 per share on the grant date. management’s policy is to estimate forfeitures. required: 1. determine the total compensation cost pertaining to the rsus. 2. & 3. prepare the appropriate journal entries. 4. suppose magnetic-optical expected a 10% forfeiture rate on the rsus prior to vesting. determine the total compensation cost.

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