Halo Company is a calendar-year U.S. firm with operations in several countries. At January 1, 2021, the company had issued 41,200 executive stock options permitting executives to buy 41,200 shares of stock for $25. The vesting schedule is 20% the first year, 30% the second year, and 50% the third year (graded-vesting). Halo does not choose to account for the options on a straight-line basis. The fair value of the options is estimated as follows:

Vesting Date	Amount Vesting			Fair Value per Option
Dec. 31, 2021		20	%	$	7
Dec. 31, 2022		30	%	$	8
Dec. 31, 2023		50	%	$	12

What is the compensation expense related to the options to be recorded in 2022?

rev: 03_30_2020_QC_CS-206085, 06_27_2020_QC_CS-218181

Multiple Choice

• $135,960.

• $49,440.

• $131,840.

• $98,880.