gans incorporated developed a business strategy that uses stock options as a major compensation incentive for its top executives on january $1,202420$ million options were granted each giving the executive owning them the right to acquire five $ $1$ par common shares the exercise price on he grant date $$10$ per share options vest on january $1,2028.$ They cannot be exercised before that date and will expire on december $31,2030$ the fair value of the $20$ million options estimated by an appropriate option pricing model is $$40$ per option ignore. On march $1,2028$ when the market price of gans incorporated stocks was $$14$ per share $3$ million of the options were exercised the journal entry to record this would include