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Question - Evergreen, Inc. is publicly traded and has a March 31st fiscal year end. Evergreen, Inc. just began offering an employee share purchase plan for all eligible employees. Under the plan shares of the company's $1 par value common stock may be purchased at 95% of the fair value on the last day of each six-month period (i.e. October 31 and March 31). On March 31, 2021, the market price of the common stock was $120 per share. On March 31, 2021 employees purchased 5,000 shares of common stock at a price of $114 per share.
You are the CFO at Evergreen, Inc. The staff accountant at Evergreen, Inc. is responsible for recording all monthly journal entries and you are reviewing the journal entries for March 2021. The journal entry for the share repurchase program recognized $30,000 of compensation expense for the discount on the stock purchase. What is the Codification Reference?
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