On December 31,2024, Sandhill Company granted executives options to purchase 64000 shares of the company's $10 par common stock at an option price of $40 per share. The options become exercisable on January 1, 2025 and represent compensation for the executives' services over a three year period beginning January 1, 2025. The Black-Scholes option pricing model determined total compensation expense to be $365700. At December 31,2025 , none of the executives had exercised their options. What is the impact on Sandhill's 2025 net income as a result of this transaction under the fair value method? $121900 decrease $121900 increase $365700 decrease so