Current Attempt in Progress

On December $31,2024,$ Blossom Company granted some of its executives options to purchase $171000$ shares of the company's $$10$

par common stock at an option price of $$50$ per share. The Black$-$Scholes option$-$pricing model determines total compensation

expense to be $$1347300.$ The options become exercisable on January $1,2025$ and represent compensation for executives' services

over a three$-$year period beginning January $1,2025.$ As of December $31,2025,$ none of the executives had exercised their options.

If the fair value method is used, what is the impact on Blossom's net income for the year ended December $31,2025$ as a result of this

transaction?

$$449100$ increase

$$0$

$$1347300$ decrease

$$449100$ decrease