Halo Company is a calendar-year U.S. firm with operations in several countries. At January 1, 2021, the company had issued 40,000 executive stock options permitting executives to buy 40,000 shares of stock for $25. The vesting schedule is 50% the first year and 50% the second year (graded-vesting). The fair value of the options is estimated as follows: What is the compensation expense related to the options to be recorded in 2022