On January 1, 2021, Coco Corp. granted an employee an option to purchase 10,000 shares of Coco's $20 par value common stock at $30 per share. The option pricing model determines that total compensation expense is $360.000. The options become exercisable on December 31, 2023, after the employee completed three years of service. The market prices of Coco's stock were as follows: $30 on January 1, 2021, $25 on December 31, 2021, $45 on December 31, 2022, and $50 on December 31, 2023.

a. For 2023, what is the appropriate amount of compensation expense related that to the stock options that Coco should record?

b. On January 1, 2024, the employee exercised 30% of the options. The entry to record the exercise of these options includes a credit to APIC - Common Stock for: