please answer question a)

Partial information for the Illesca Corporation is as follows: 20x5 20x4Bonds payable, 5% $ '5" $23,932,648Convertible bonds payable, 4% 10,430,000 -Common Stock 10,130,515?f 5,600,000Contributed Surplus — Common Stock Repurchases - -Contributed Surplus — Stock Options 220,200 293,200Retained Earnings 3,3 60,043 8,924,000Compensation expense — stock options ?Interest expense 2,560,000Additionoi Information — 1. The company has two stock option plans: Plan A104: this plan vested on January 1, 20x5 and comprises of 68,000vested stock options at an exercise price of $12. Each stock option has a market value of $3.50. The exercise period for these options ends on June30, 20x6. On March 1, 20x5, one half of the stock options were exercised when the stock price was $33.Plan A105: this plan was granted on June 30, 20x4. A total of 100,000stock options were granted at an exercise price of $15. The total fair value of the plan was estimated at $240,000. The options vest on June 30, 20x6.On December 31, 20x5, management estimated that 84% of the stock options would vest.