Halo Company is a calendar-year U.S. firm with operations in several countries. At January 1, 2021, the company had issued 42,000 executive stock options permitting executives to buy 42,000 shares of stock for $27. 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%. $9

Dec. 31, 2022 30% $10

Dec. 31, 2023 50% $14

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

$63,000.

$126,000.

$161,000.

$152,600.