On January $1,2024,$ Adams$-$Meneke Corporation granted $20$ 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 $31,2026($the vesting date$).$

The exercise price is the market price of the shares on the date of grant, currently $$48$ per share.

The fair value of the options, estimated by an appropriate option pricing model, is $$3$ per option.

Management$$s policy is to estimate forfeitures.

No forfeitures are anticipated.

Ignore taxes.

Required:

Determine the total compensation cost pertaining to the options on January $1,2024.$

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

Unexpected turnover during $2025$ caused an estimate of the forfeiture of $5\%$ of the stock options. Prepare the appropriate journal entry$($s$)$ on December $31,2025$ and $2026$ in response to the new estimate.