Viceroy Industries offers stock options to employees as part of its overall compensation plan. The employee stock options fully vest in two years.

a$.$ On January $1,$ Year $3,$ Viceroy granted $200,000$ options to employees. The exercise price of those options was $$40\mathrm{.}00$ per option. The weighted average fair value of the options granted was $$15\mathrm{.}00$ per option.

Net income for Viceroy for Year $3$ was $$30\mathrm{.}0$ million.

Use the financial statements effects template to report the effects in Year $4$ of the employee stock options granted on January $1,$ Year $3.$

Use negative signs with your answers, when appropriate. Select $"$N$/$A$"$ as your answer if a part of the equation is not affected.

b$.$ During Year $5,$ Viceroy employees exercised $160,000$ of the options granted in Year $1,$ paying a total of $$6,400,000$ in cash to the company. The shares were issued from treasury shares previously purchased at

$$40$ per share.

Use the financial statements effects template to report the effects of the employee exercise of stock options in Year $5.$

Use negative signs with your answers, when appropriate. Select $"$N$/$A$"$ as your answer if a part of the equation is not affected.