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experience mighNdione that a material number of the options will be forfeited before they vest Prevhous e Knowledge Check 01 On January 1, Year 1,

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experience mighNdione that a material number of the options will be forfeited before they vest Prevhous e Knowledge Check 01 On January 1, Year 1, Manning Company granted 97000 stock options to certain executives. The options are exercisable no sooner than December 31, Year 3, and expire on January 1, Year 6. Each option can be exercised to acquire one share of $1 par common stock for $8. An option-pricing model estimates the fair value of the options to be $4 on the date of grant. At the time of issuance, no estimate of forfeitures is made. If unexpected turnover in Year 2 caused the company to now estimate that 20% of the options would be forfeited, what amount should Manning recognize as compensation expense for Year 2? (Do not round intermediate calculations. Round your final answer to the nearest whole doller amount)

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