need help with #3

Q1. on January 1, 2016, Adams-Mencke Corporation granted 15 million incentive stock options to division managers, each permitting holders to purchase one share of the company's $1 par common shares within the next six years, but not before December 31, 2018 (the vesting date). The exercise price is the market price of the shares on the date of grant, currently $14 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. Required: 1. Determine the total compensation cost pertaining to the options on January 1, 2016. 15x4- $60 million 2. Prepare the appropriate journal entry to record compensation expense on December 31, 2016. Compensation expense 20 million (60 million/3) Paid-in capital-stock options 20 million 3. Record the exercise of the options if all of the options are exercised on May 11, 2020, when the market price is $20 per share