The Peach Corporation Provides Restricted Stock to Certain Executives

question 45

Essay

The Peach Corporation provides restricted stock to certain executives. Under the plan, the company granted 30 million shares on January 1, 2018, which vest in four years. The fair value of the shares is $14. No forfeitures are anticipated. Ignore taxes.
Required:
1. Determine the total compensation cost pertaining to the restricted stock.
2. Prepare the appropriate journal entry (if any) to record the award of restricted stock on January 1, 2018.
3. Prepare the appropriate journal entry (if any) to record compensation expense on December 31, 2018.

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Definitions:

Self-Disclosure

The act of revealing personal information about oneself to others, fostering intimacy and understanding in relationships.

Altruism

Altruism is the selfless concern for the well-being of others, often leading to acts of kindness without expectation of reward.

Attribution Theory

A theory focused on how people explain the causes of behavior and events, attributing them to internal dispositions or external situations.

Walter Mishel

A psychologist known for his research on personality and his work on the cognitive-affective personality system.