On December 31, 2020, Crane Company granted some of its executives options to purchase 55000 shares of the company's $10 par common stock at an option price of $50 per share. The options become exercisable on January 1, 2021, and represent compensation for executives' services over a three-year period beginning January 1, 2021. The Black-Scholes option pricing model determines total compensation expense to be $368100. At December 31, 2021, none of the executives had exercised their options. What is the impact on Crane's net income for the year ended December 31, 2021 as a result of this transaction under the fair value method?

$0

$122700 decrease

$368100 decrease

$122700 increase