Exercise $19-4($Algo$)$ Restricted stock units; forfeitures anticipated $[$LO$19-1]$

Magnetic$-$Optical Corporation offers a variety of share$-$based compensation plans to employees. Under its restricted stock unit plan,

the company on January $1,2024,$ granted restricted stock units $($RSUs$)$ representing $5$ million of its $$1$ par common shares to various

division managers.

The shares are subject to forfeiture if employment is terminated within three years.

The common shares have a market price of $$30\mathrm{.}00$ per share on the grant date.

Management's policy is to estimate forfeitures.

Required:

Determine the total compensation cost pertaining to the RSUs.

Prepare the appropriate journal entry to record the RSUs on January $1,2024.$

Prepare the appropriate journal entry to record compensation expense on December $31,2024.$

Suppose Magnetic$-$Optical expected a $10\%$ forfeiture rate on the RSUs prior to vesting. Determine the total compensation cost.

Complete this question by entering your answers in the tabs below.

Req $2$ and $3$

Determine the total compensation cost pertaining to the RSUs.

Note: Enter your answer in millions $($i$.$e$.,10,000,000$ should be entered as $10).$

Total compensation cost

million