FX Services granted 17.0 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $9 per share on the grant date. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives? (Round your answer to 1 decimal place.)

Multiple Choice

• $ 76.5 million.

• $ 17.0 million.

• $ 0 million.

• $ 153.0 million.

• On January 1, 2018, M Company granted 94,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2020, and expire on January 1, 2024. Each option can be exercised to acquire one share of $1 par common stock for $13. An option-pricing model estimates the fair value of the options to be $5 on the date of grant. What amount should M recognize as compensation expense for 2018? (Round your answer to the nearest dollar amount.)

  Multiple Choice

• $62,666

• $31,333

• $188,000

• $156,667