On January 1, 2020, Martha Smith was granted 3,000 options when the market price was \(\$ 30\) per share. Using an option-pricing model, the fair value of the options granted to Smith was valued at \(\$ 9\) per option. On December 31, 2020, Meno's management believed that Smith would exercise her options at the first exercise date. By December 31, 2021, Meno's EPS had increased by \(20 \%\).

Smith exercised her options at December 31, 2022, when the market price of the stock was \(\$ 60\) per share.

Required

a. Compute the total amount of compensation cost for the grant made to Smith.

b. What entry should be made on the date of the grant?

c. What entry should be made at December 31, 2020?

d. Provide the entry to record the exercise of the options held by Smith on December 31, 2022.