Determining Compensation Expense Considering Forfeitures of Options

On January $1$ of Year $1,$ Spring Co$.$ awards $10,000$ stock options to acquire $10,000$ shares of common stock $($ $$1$ par value$)$ to executives

at an exercise price of $$30$ per share. The market price of Spring Co$.$ common stock on the grant date is $$30$ per share. The options are

exercisable after January $1$ of Year $5,$ and expire when the employee leaves the company or on December $31$ of Year $7,$ whichever is

first. Management estimates through a fair value option$-$pricing model that total compensation expense is $$156,000.$ The requisite

service period is considered to be $4$ years. Spring Co$.\text{'}$s policy is to record forfeitures as they are incurred. Record the entry for

compensation expense in Year $2$ considering $1,500$ shares were forfeited in that year.