The compensation associated with restricted stock under a stock award plan is:
A)the book value of an unrestricted share of the same stock times the number of shares.
B)the estimated fair value of a share of similar stock times the number of shares.
C)allocated to expense over the service period which usually is the vesting period.
D)the book value of a share of similar stock times the number of shares.

Question

Quizplus · Accepted Answer

The compensation cost for restricted stock is recognized over the service period, which is typically the vesting period, as the employee earns the right to the stock.

The Compensation Associated with Restricted Stock Under a Stock Award