Document ID: chunk:federal_register_of_legislation:F2022C00493:reg:5:p2
Version: federal_register_of_legislation:F2022C00493
Segment Type: reg
Provision Reference: reg 5 (pt 2/2)
Character Range: 267815–270067

per share). The entity pays the fair value of the withheld shares in cash to the tax authority on the employee's behalf. In other words, it is as if the entity had issued all 100 vested shares to the employee, and at the same time, repurchased 40 shares at their fair value.
Application of requirements
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Dr.      Cr.     Cr.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Expense  Equity  Liability
Year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Calculation                                    CU   CU     CU