Vikram Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock award...

Transcribed Image Text:

Vikram Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock award plan, the company on January 1, 2024, granted 30 million of its $1 par common shares to various division managers. The shares are subject to forfeiture if employment is terminated within four years. The common shares have a market price of $16 per share on the grant date. Vikram expected a 10% forfeiture rate on the restricted shares prior to vesting. What amount should Vikram charge to compensation expense for the year ended December 31, 2024? Vikram Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock award plan, the company on January 1, 2024, granted 30 million of its $1 par common shares to various division managers. The shares are subject to forfeiture if employment is terminated within four years. The common shares have a market price of $16 per share on the grant date. Vikram expected a 10% forfeiture rate on the restricted shares prior to vesting. What amount should Vikram charge to compensation expense for the year ended December 31, 2024?

Answer rating: 100% (QA)

To determine the amount that Vikram Corporation should charge to compensation expense for the year e... View the full answer