10-400-13 Lecture Notes - Lecture 3: Financial Statement
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Facebook Inc. included thefollowing disclosure note in an annual report: |
Share-Based Compensation (inpart) |
. . . compensation expense related to these grants is based onthe grant date fair value of the RSUs and is recognized on astraight-line basis over the applicable service period. |
The following table summarizesthe activities for our unvested RSUs for the year ended December31, 2013: |
Number of Shares (in thousands) | Weighted Average Grant Date Fair Value | ||||||||||
Unvested at December 31, 2012 | 113,044 | $ | 21.38 | ||||||||
Granted | 53,344 | 29.98 | |||||||||
Vested | (47,550 | ) | 16.96 | ||||||||
Forfeited | (14,867 | ) | 25.31 | ||||||||
Unvested at December31, 2013 | 103,971 | $ | 27.30 | ||||||||
Required: |
1. | Assuming a four-year vesting period, how much compensationexpense did Facebook report in the year ended December 31, 2014,for the restricted stock units granted during the year endedDecember 31, 2013? (Enter your answer in millions (i.e.,10,000,000 should be entered as 10).) |
2. | Based on the information provided in the disclosure note,prepare the journal entry that summarizes the vesting of RSUsduring the year ended December 31, 2013. (Facebookâs common shareshave a par amount per share of $0.000006. (If no entry isrequired for a transaction/event, select "No journal entryrequired" in the first account field. Enter your answer in wholedollars.) |
Facebook Inc. included thefollowing disclosure note in an annual report: |
Share-Based Compensation (inpart) |
. . . compensation expense related to these grants is based onthe grant date fair value of the RSUs and is recognized on astraight-line basis over the applicable service period. |
The following table summarizesthe activities for our unvested RSUs for the year ended December31, 2013: |
Number of Shares (in thousands) | Weighted Average Grant Date Fair Value | ||||||||||
Unvested at December 31, 2012 | 113,044 | $ | 21.38 | ||||||||
Granted | 53,344 | 29.98 | |||||||||
Vested | (47,550 | ) | 16.96 | ||||||||
Forfeited | (14,867 | ) | 25.31 | ||||||||
Unvested at December31, 2013 | 103,971 | $ | 27.30 | ||||||||
Required: |
1. | Assuming a four-year vesting period, how much compensationexpense did Facebook report in the year ended December 31, 2014,for the restricted stock units granted during the year endedDecember 31, 2013? (Enter your answer in millions (i.e.,10,000,000 should be entered as 10).) |
2. | Based on the information provided in the disclosure note,prepare the journal entry that summarizes the vesting of RSUsduring the year ended December 31, 2013. (Facebookâs common shareshave a par amount per share of $0.000006. (If no entry isrequired for a transaction/event, select "No journal entryrequired" in the first account field. Enter your answer in wholedollars.) |