At January 1, Year 1, Edwards Company issued 10,000 stock options permitting employees to buy 10,000 shares of stock for $50 per share. The vesting schedule (graded-vesting) and value of the options that vest over the 3-year period is estimated at January 1, Year 1, as set forth in the following table.

Vesting Date	Amount Vesting				Fair Value per Option
Dec. 31, Year 1		10	%		$	2
Dec. 31, Year 2		30	%		$	3
Dec. 31, Year 3		60	%		$	4

What is the compensation cost for Year 1 relating to these stock options?