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On January 1, 2021, California Safari granted 2 million restricted shares of its S1 par common stock to executives, subject to forfeiture if employment is terminated within four years. The shares have a market price of $6 per share on January 1, 2021. Ignoring taxes, what is the compensation expense for 2021 related to this restricted stock award? Multiple Choice $3,000,000 $O $4,000,000 $12,000,000

On January 1, 2021, California Safari granted 2 million restricted shares of its S1 par common stock to executives, subject to forfeiture if employment is terminated within four years. The shares have a market price of $6 per share on January 1, 2021. Ignoring taxes, what is the compensation expense for 2021 related to this restricted stock award? Multiple Choice $3,000,000 $O $4,000,000 $12,000,000

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 8RE: On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the...
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On January 1, 2021, California Safari granted 2 million restricted shares of its S1 par common stock to executives, subject to forfeiture if employment is terminated within four years. The shares have a market price of $6 per share on January 1, 2021. Ignoring taxes, what is the compensation expense for 2021 related to this restricted stock award? Multiple Choice $3,000,000 $0 $4,000,000 $12,000,000
Transcribed Image Text:On January 1, 2021, California Safari granted 2 million restricted shares of its S1 par common stock to executives, subject to forfeiture if employment is terminated within four years. The shares have a market price of $6 per share on January 1, 2021. Ignoring taxes, what is the compensation expense for 2021 related to this restricted stock award? Multiple Choice $3,000,000 $0 $4,000,000 $12,000,000
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