On January 1, 2021, a company granted 40 million stock options to top executives. The options vest on December 31, 2023, and expire on December 31, 2027. Each option can be exercised to acquire one share of $1 par common stock for $14. An option-pricing model estimates the fair value per option to be $4 on grant date. The company estimates a 10% forfeiture rate.

On April 15, 2024, 36 million of the options are exercised, when the stock price is $17 per share.

a.	What is compensation expense in year 1 (2021)?	[ Select ] ["$53.33 million", "$160 million", "$48 million", "$144 million"]
b.	In 2023, the company observes there were no forfeitures after all. What is compensation expense in 2023?	[ Select ] ["$68 million", "$160 million", "$16 million", "$64 million"]
c.	The entry to record the exercise in 2024 includes a credit to APIC-Common Stock for:	[ Select ] ["$576 million", "$108 million", "$612 million", "$144 million", "$36 million"]