Question

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

Answer 1

Answer:

Allocated to expense over the service period which usually is the vesting period.

Explanation:

The compensation associated with restricted stock units (RSUs) under a stock award plan is Allocated to expense over the service period which usually is the vesting period.

The compensation associated with restricted stock units (RSUs) under a stock award plan is computed as

Number of shares represented by the RSUs * market price of an unrestricted share of the same stock.