What is the effect on earnings in the year

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Question 1 Parmer Corp. granted restricted stock units (RSUs) representing 62 million of its $1 par common shares to executives subject to forfeiture of employment if terminated within 4 years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $8 per share on he grant date, ignoring taxes, what us the effect on earnings in the year after the shares are granted to executives?

Option 1: $0

Option 2: $62 million.

Option 3: $124 million.

Option 4: $496 million.

Reference no: EM132607954

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