Stallings Products Incorporated offers stock-based compensat…
Stallings Products Incorporated offers stock-based compensation to its vice presidents. On January 1, 2027, the corporation granted restricted stock units (RSUs) representing 12 million of its $1 par common shares, subject to forfeiture if employment is terminated within two years. The company’s common shares have a market value of $6 per share on the date the award is granted. Required: Assume that no shares are forfeited. Determine the total compensation cost pertaining to the restricted shares. Prepare the appropriate journal entries related to the restricted stock through December 31, 2028.