Analyzing Stock Option Expense for Income Merck & Co., Inc., reported net income attributable to Merck & Co., Inc. of $2,394 million for the 2017 fiscal year. Its 2017 10-K report contained the following information regarding its stock options. Employee stock options are granted to purchase shares of Company stock at the fair market value at the time of grant. These awards generally vest one-third each year over a three-year period, with a contractual term of 7-10 years ... The weighted average exercise price of options granted in 2017 was $63.88 per option ... The weighted average fair value of options granted in 2017 was $7.04 per option. a. Merck granted 4,232,000 options to employees in 2017. Using the financial statement effects template, show how the stock option grants would be recorded in 2017. (Assume all grants took place on January 1, 2017.) Instructions: Enter entire number - do not convert to millions. Round answers to the nearest dollar. Use negative signs with answers when appropriate. If no entry is required leave answers blank in the appropriate row. Income Statement Cash Asset + Balance Sheet Noncash Asset = Liabilities + 0 0 - 0 = 0 + Earned Capital Transaction 1/1/17: Options granted to employees 12/31/17: To record compensation expense Contrib. Capital 0 0 Revenues - Expenses = Net Income 0 0 0 0 = 0 0 0