(1)

Under its executive stock option plan, National Corporation granted 15 million options on January 1, 2020, that permit executives to purchase 15 million of the companys $1 par common shares within the next eight years, but not before December 31, 2022 (the vesting date). The exercise price is the market price of the shares on the date of grant, $18 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures were anticipated; however, unexpected turnover during 2021 cause the forfeiture of 5% of the stock options.

Ignoring taxes, what's the effect on earnings in 2022?