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jekas [21]
3 years ago
7

The Peach Corporation provides restricted stock to certain executives. Under the plan, the company granted 30 million shares on

January 1, 2021, which vest in four years. The fair value of the shares is $14. No forfeitures are anticipated. Ignore taxes. Required: 1. Determine the total compensation cost pertaining to the restricted stock. 2. & 3. Prepare the appropriate journal entries (if any).
Business
1 answer:
daser333 [38]3 years ago
6 0

Answer:

1. Determine the total compensation cost pertaining to the restricted stock.

  • 30 million x $14 = $420 million

2. Prepare the appropriate journal entries

December 31, Year 1:

Dr Stock compensation expense 105,000,000

    Cr Additional paid in capital - restricted stock 105,000,000

December 31, Year 2:

Dr Stock compensation expense 105,000,000

    Cr Additional paid in capital - restricted stock 105,000,000

December 31, Year 3:

Dr Stock compensation expense 105,000,000

    Cr Additional paid in capital - restricted stock 105,000,000

December 31, Year 4:

Dr Stock compensation expense 105,000,000

    Cr Additional paid in capital - restricted stock 105,000,000

January 1, Year 4, the stocks are handed out:

Dr Additional paid in capital - restricted stock 420,000,000

    Cr Common stock 420,000,000

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Answer:

False

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What is the difference between patronage and the merit principle?
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All of the following are examples of market segments except a.sales territories. b.advertising. c.customers. d.products.
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b.advertising

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3 years ago
Anne’s marginal income tax rate is 32 percent. She purchases a corporate bond for $19,500 and the maturity, or face value, of th
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6.0%

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