Chen, Inc. awarded 2,000 restricted stock units allowing the executive to purchase 2,000 common shares. At that time, the common shares had a par value of $1 and their fair value was equal to $80,000. The vesting period is 2 years. Assume the executive fulfilled the vesting period with no forfeiture. At the end of vesting total stockholder's equity (TSE) will change by the following amount: -TSE will increase by $80,000. -TSE will have a net $-0- change. -TSE will decrease by $40,000. -TSE will decrease by $80,000.
Chen, Inc. awarded 2,000 restricted stock units allowing the executive to purchase 2,000 common shares. At that time, the common shares had a par value of $1 and their fair value was equal to $80,000. The vesting period is 2 years. Assume the executive fulfilled the vesting period with no forfeiture. At the end of vesting total stockholder's equity (TSE) will change by the following amount: -TSE will increase by $80,000. -TSE will have a net $-0- change. -TSE will decrease by $40,000. -TSE will decrease by $80,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Chen, Inc. awarded 2,000 restricted stock units allowing the executive to purchase 2,000 common shares. At that time, the common shares had a par value of $1 and their fair value was equal to $80,000. The vesting period is 2 years. Assume the executive fulfilled the vesting period with no forfeiture. At the end of vesting total
-TSE will increase by $80,000.
-TSE will have a net $-0- change.
-TSE will decrease by $40,000.
-TSE will decrease by $80,000.
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