00. In order to retain certain key executives, Smiley Corporation granted them incentive stock options on December 31, 2009. 00,000 options were granted at an option price of $35 per share. Market prices of the stock were as follows: December 31, 2010 $46 per share December 31, 2011 51 per share The options were granted as compensation for executives' services to be rendered over a two-year period beginning January 1, 2010. The Black-Scholes option pricing model determines total compensation expense to be $800,000. What amount of compensation expense should Smiley recognize as a result of this plan for the year ended December 31, 2010 under the fair value method? a. $1,400,000. 0. $330,000. c. $300,000. 0. $400,000