Question - On January 1, 2013, Nineteen Company awarded 12 million shares of its $1 par value common stock to employees, subject to forfeiture if employment is terminated within three years. Management estimates a forfeiture rate of 10%. On the grant date, the shares have a market price of $8 per share.
1. Determine the compensation expense recognized on January 1, 2013.
2. Determine the compensation expense recognized on December 31, 2013.
3. Determine the additional paid-in capital recognized when the common shares are distributed on December 31, 2015.