Answer:
C. $14, 500
Explanation:
Total compensation expense at grant date is
$60,000 (3,000 x $20).
The service period is four years ($20 x 5 - $20 x 8).
Annual expense recognized is $15,000 ($60,000/4).
Through $20 x 6, a total of $30,000 of compensation expense is recognized. After the forfeit, only 2,900 shares remain to be awarded.
Annual compensation expense for the remaining two years before considering forfeited shares is therefore $14,500 [(2,900 x $20)/4].
