On January 1, 2016, Telespace Inc. grants 12 million stock options to its employees. The stock options have exercise price of $20, which is equal to the grant-date price. All options will vest in three years. The grant date fair value of the options is $15 per option. All 12 million options are expected to vest. On January 2, 2019, all 12 million vested options are exercised when the stock price is $60. The applicable tax rate for all periods is 30%. The company has sufficient taxable income for the stock option tax deductions to reduce income taxes payable in all periods.

1. How much is the cash that Telespace will collect from its employees when they exercise all vested stock options on January 2, 2019?

a. $240 million

b. $480 million

c. $720 million

d. $0

1. How much is the excessive tax benefits to be credited to tax expense on January 2, 2019 according to the ASU 2016-09?

a. $144 million

b. $90 million

c. $60 million

d. $48 million

Please work out the answer. Thank you!