On Dec $31,2020,$ Coronado granted some executives options to purchase $174000$ shares of the company's $$10$ par common stock at an option price of $$50$ per share. The Black$-$Scholes option pricing model determines total compensation expense to be $$1352100.$ the options become exercisable on jan $1,2021,$ and represent compensation for executives services for a $3$ year period beginning jan $1,2021.$ At dec $31,2021$ none of the executives had exercised their options. what is the impact on coronado's net income for the year ended dec $31,2021$ as a result of this transaction under the fair value method?

$1352100$ decrease.

$405700$ decrease

$0$

$450700$ increase