General information about your company:

Incremental borrowing rate 5 %

Number of common shares authorized 250,000

Number of common shares issued and outstanding as of the end of last year 42,000

Par value of common stock $1.00

Tax rate 21%

At the start of the year, your company granted 8,000 stock options to your company's CEO. Each stock option gives the holder the right to purchase a share for $25, the stock price at the date of the grant, after the service period of 3 years. Using a fair value option pricing model, the fair value of each option at the grant date is $6 and the average market price of the stock during the year was $23