Compensation expense in fiscal 2020

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Microsoft provides compensation to executives in the form of a variety of incentive compensation plans, including restricted stock
award grants. The following is an excerpt from a disclosure note from Microsoft's 2020 annual report
Note 18 Employee Stock and Savings Plans (in part)
Stock awards entitle the holder to receive shares of Microsoft common stock as the award vests. Stock awards generally vest over a
five-year period... During fiscal year 2020, the following activity occurred under our plans:
Stock awards:
Nonvested balance, beginning of year
Granted
Vested
Forfeited
Nonvested balance, end of year
Shares (in millions)
147
53
(65)
126
Weighted Average
Grant-Date Fair
Value
$ 78.49
140,49
75.35
90.30
$ 105.23
Required:
If all awards are granted, acquired, vested, and forfeited evenly throughout the year, what is the compensation expense in fiscal 2020
pertaining to the previous and current stock awards? Assume forfeited shares were granted evenly throughout the three previous
years.
Note: Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,500 should be entered as 5.5).
Compensation expense in fiscal 2020
4
Transcribed Image Text:Microsoft provides compensation to executives in the form of a variety of incentive compensation plans, including restricted stock award grants. The following is an excerpt from a disclosure note from Microsoft's 2020 annual report Note 18 Employee Stock and Savings Plans (in part) Stock awards entitle the holder to receive shares of Microsoft common stock as the award vests. Stock awards generally vest over a five-year period... During fiscal year 2020, the following activity occurred under our plans: Stock awards: Nonvested balance, beginning of year Granted Vested Forfeited Nonvested balance, end of year Shares (in millions) 147 53 (65) 126 Weighted Average Grant-Date Fair Value $ 78.49 140,49 75.35 90.30 $ 105.23 Required: If all awards are granted, acquired, vested, and forfeited evenly throughout the year, what is the compensation expense in fiscal 2020 pertaining to the previous and current stock awards? Assume forfeited shares were granted evenly throughout the three previous years. Note: Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,500 should be entered as 5.5). Compensation expense in fiscal 2020 4
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