Heldi Software Corporation provides a varlety of share$-$based compensation plans to its employees. Under its executive stock option plan, the company granted options on January $1,2024,$ that permit executives to acquire $5$ million of the company's $$1$ par common shares within the next five years, but not before December $31,2025($the vesting date$).$

The exercise price is the market price of the shares on the date of grant, $$73\mathrm{.}00$ per share.

The fair value of the $5$ million options, estimated by an appropriate option pricing model, is $$18$ per option.

No forfeltures are anticipated.

Ignore taxes.

Required:

Determine the total compensation cost pertaining to the options.

Prepare the appropriate journal entry to record the award of options on January $1,2024.$

Prepare the appropriate journal entry to record compensation expense on December $31,2024.$

Prepare the appropriate journal entry to record compensation expense on December $31,2025.$

Complete this question by entering your answers in the tabs below.

Determine the total compensation cost pertaining to the options.

Note: Enter your answer in millions $($i$.$e$.,10,000,000$ should be entered as $10).$

Total compensation cost

million

Reg $1$