In order to retain certain key executives, Marigold Corp. granted them incentive stock options on December 31, 2020. 92000 options were granted at an option price of $35 per share. Market prices of the stock were as follows:

December 31, 2018		$46 per share
December 31, 2019		51 per share

The options were granted as compensation for executives' services to be rendered over a two-year period beginning January 1, 2021. The Black-Scholes option pricing model determines total compensation expense to be $1040000. What amount of compensation expense should Marigold recognize as a result of this plan for the year ended December 31, 2021 under the fair value method?

$1144000.

$3220000.

$520000.

$1040000.