Solved by verified expert :Magnetic-Optical Corporation offer a variety of share-based compensation plans to employees. Under its restricted stock award plan, the company on Jan 1, 2011granted 4 million of its $1 par common shares to various division managers. The shares are subject to forfeiture if employment is terminated within 3 years. The common shares have a market price of $22.50 per share on the grant date.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 Jan 1, 20113. Prepare the appropriate journal entry to record compensation expense on Dec. 31, 20114. Suppose Magnetic-Optical expected a 10% forfeiture rate on the restricted shares prior to vesting. Determine the total compensation cost.
