On January 1, 2013, VKI Corporation awarded 12 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. On the grant date, the shares have a market price of $2.50 per share.
Required:
1. Determine the total compensation cost pertaining to the restricted shares. (Enter your answer in millions.)
2. Prepare the appropriate journal entries. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
1. Record the award of restricted shares on January 1, 2013.
2. Record compensation expense on December 31, 2013.
3. Record compensation expense on December 31, 2014.
4. Record compensation expense on December 31, 2015.
5. Record the lifting of restrictions on the shares at December 31, 2015.