Lance Chips granted restricted stock units (RSUS) representing 40 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. Shares vest after 4 years. After the recipients of the RSUS satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $5 per share on the grant date. The annual compensation expense pertaining to the restricted stock units is: A) $5 million. B) $40 million. C) $50 million. D) $200 million. O A O B O D

Lance Chips granted restricted stock units (RSUS) representing 40 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. Shares vest after 4 years. After the recipients of the RSUS satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $5 per share on the grant date. The annual compensation expense pertaining to the restricted stock units is: A) $5 million. B) $40 million. C) $50 million. D) $200 million. O A O B O D

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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