Question: Hill view Homes, Ltd. granted options at the beginning of the current year to all its salaried employees. At the grant date, the options had

Hill view Homes, Ltd. granted options at the beginning of the current year to all its salaried employees. At the grant date, the options had a fair value of $ 900,000 and can only be exercised over a three-year vesting period. At the end of the year, Hill view charged $ 300,000 to expense, assuming that all employees would vest. Prepare the journal entry to record the compensation expense for year two assuming that Hill view expects only 35% of employees to vest.

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