On December $31,2024,$ Cullumber Company granted some of its executives options to purchase $177000$ shares of the company's $\backslash (\backslash$$ $10\backslash )$ par common stock at an option price of $\backslash (\backslash$$ $50\backslash )$ per share. The Black$-$Scholes option$-$pricing model determines total compensation expense to be $\backslash (\backslash$$ $1348500\backslash ).$ The options become exercisable on January $1,2025$ and represent compensation for executives' services over a three$-$year period beginning January $1,2025.$ As of December $31,2025,$ none of the executives had exercised their options.

If the fair value method is used, what is the impact on Cullumber's net income for the year ended December $31,2025$ as a result of this transaction?

$\backslash$$$449500$ decrease

$\backslash (\backslash$$ $1348500\backslash )$ decrease

$\backslash$$$0$

$\backslash (\backslash$$ $449500\backslash )$ increase