Olde Corporation provides an executive stock option plan. Under the plan, the company granted options on January $1,2024,$ that permit executives to acquire $4\mathrm{.}0$ million of the company's $$1$ par value common shares within the next five years, but not before December $31,2025($the vesting date$).$ The exercise price is the market price of the shares on the date of the grant, $$15$ per share. The fair value of the options, estimated by an appropriate option pricing model, is $$3$ per option. No forfeltures are anticipated. Ignore taxes.

Required:

Determine the total compensation cost pertaining to the options, assuming the faled has been selected.

& $4.$ Prepare the appropriate journal entries $($if any$).$

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

Determine the total compensation cost pertaining to the options, assuming the fair value approach has been selected.

Note: Enter your answer in millions rounded to $2$ decimal places $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}50).$

Total compensation cost

million