Estimating Stock-Based Compensation Expense Rainier Corp. has several types of stock-based compensation plans including a stock purchase plan that allows employees to buy shares at a 15% discount. During 2016, employees purchased 25,000 shares under this plan. Also, the company granted 20,000 stock options with estimated fair value of $10.10 per option. The options vest ratably over three years. Ranier’s average stock price during this year was $78.94. Determine Rainier’s stock-based compensation expense for 2016.