he exercise price equals the $4 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2024, and expire December 31, 2025. Each option has a fair value of $1 based on an option pricing model. What is the total compensation cost for this plan

$63,500

Explanation:

Missing word "Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2021, options were granted for 63,500 $1 par common shares. The exercise price equals the $4 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2024, and expire December 31, 2025. Each option has a fair value of $1 based on an option pricing model"

On January 1, 2021, options were granted for 84,000 $1 par common shares

The exercise price equals the $4 market price of the common stock on the grant date.

Each option has a fair value of $1 based on an option pricing model.

Total compensation cost for this plan = Estimated Fair value per option* Option granted

Total compensation cost for this plan = 63,500 * $1

Total compensation cost for this plan = $63,500