Accounting for stock options. Intel grants 100.000 stock options to employees on December 31. Year 13. permitting them to purchase 100.000 shares of Intel SI par value common stock for

$30 per share. An option-pricing model indicates that the value of each option on this date is SI 2. Intel expects to receive the benefit of enhanced employee services for the next three years.

On December 3 1 . Year 1 8. employees exercise these options when the market price of the stock is S40 per share. Compute the pre-tax effect of this option plan on the earnings of Intel for Year 13 through Year 18.