Corporation provides an executive stock option plan.Under the plan,the company granted options on January 1,2009,that permit executives to acquire 70 million of the company's $1 par value common shares withing the next eight years,but not before December 31,2012(the vesting date).The exercise price is the market price of the shares on the date of the grant,$27 per share.The fair value of the options,estimated by an appropriate option pricing model,is $4 per option.No forfeitures are anticipated.Ignore tax. Required: 1.Determine the total compensation cost pertaining to the`options. 2.Prepare the appropriate journal entry(if any)to record the award of options on January 1,2009. 3.Prepare the appropriate journal entry(if any)to record compensation expense on December 31,2009