On January 1, 2018, Cullumber Inc. granted stock options to
officers and key employees for the purchase of 20,000 shares of the
company’s $10 par common stock at $27 per share. The options were
exercisable within a 5-year period beginning January 1, 2020, by
grantees still in the employ of the company, and expiring December
31, 2024. The service period for this award is 2 years. Assume that
the fair value option-pricing model determines total compensation
expense to be $323,200....