The Munder Difflin Paper Corporation provides an executive stock option plan. Under the plan, the company granted options to the CEO on January 1, 2013, that permit her to acquire 12 million of the company's $1 par value common shares within the next five years, but not before December 31, 2014 (the vesting date). The exercise price is the market price of the shares on the date of the grant, $22 per share. The fair value of the options, estimated by an appropriate model, is $4 per option.

On April 30, 2016, the market price of the common stock is $50 so the CEO exercised 9 million options to purchase 9 million shares.

a) Write the compensation expense that will be recorded in 2013 and 2014, show work

b) Prepare the appropriate journal entry on April 30, 2016 to record this transaction, show work