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Determine the total compensation cost pertaining

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Problem - On January 1, 2013 Jeans-R-Us Company awarded 15 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. One the date of the grant, the stock had a market price of $3 per share.

Required -

1. Determine the total compensation cost pertaining to the restricted shares.

2. Prepare the appropriate journal entry to record the award on January 1, 2013.

Reference no: EM132612072

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