Expensing Stock Grants

You are the brand new CFO of Microsoft, taking over after the previous CFO, John Connors, has abruptly terminated his employment to join an investment firm that can make use of his uncanny ability to predict the future.

You take over on Monday, August 1st, and find on your desk a shoebox labelled July Employee Compensation. Inside you find several scraps of paper which are notes concerning all the employee compensation transactions which took place in the month of July, other than normally scheduled wages. These transactions have not yet been accounted for.

These transactions all fall into one of the following categories :

1. Cash bonuses to employees
2. MSFT stock new share grants to employees
3. MSFT stock existing share grants to employees
4. Purchase of existing MSFT shares on the market for employee grant
5. Issuance of new MSFT shares for employee grant
6. Purchase of granted shares directly from the employee to whom they were granted
7. Purchase of MSFT shares on the market to offset the shareholder ownership dilution caused by the previous granting of new shares to employees

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