What is the effect on earnings


First Link Services granted 8 million of its $1 par common shares to executives, subject to forfeiture if emplotment is terminated within three years. The common shares have a market price of $6 per share on the grant date. Ignoring taxes, what is the total compensation cost pertaining to the restricted shares? What is the effect on earnings in the year after the shares are granted to executives?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What is the effect on earnings
Reference No:- TGS0677821

Expected delivery within 24 Hours