On January? 1, 2017, Cora Inc

Finance May 08, 2021

On January? 1, 2017, Cora Inc. issues 90 shares of $5 par restricted stock to its key executives. The market value of unrestricted shares of the same stock on the date of issue is $21 and there is a four year vesting period. What is the amount of compensation expense recorded on December 31, 2017?

Expert Solution

Computation of Amount of Compensation Expense recorded on December 31, 2017:

Amount of Compensation Expenses = Number of Restricted Stock, Shares Issued * Market Value of a Share as on Date

= 90 shares * $21

= $1,890

So, Amount of Compensation Expense recorded on December 31, 2017 is $1,890.

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