Exercise 0-7

On January 1, 2021, a company granted stock options for 89,000 shares of its $11 par value common stock to its key employees. Each option entitles the employees to purchase one share of common stock at $21. The Black-Scholes option pricing model determines total compensation expense to be $240,000. The options are exercisable beginning January 1, 2024.

On January 1, 2024, when the market price of the stock was $35 per share, 8,000 options were exercised. To record the 8,000 options exercised, the company should record Cash in the amount of $__________. (if no cash amount should be recorded, then enter 0)