In order to retain certain key executives, Waterway Industries granted them incentive stock options on December 31, 2020. 144000 options were granted at an option price of $35 per share. Market prices of the stock were as follows: December 31, 2021 December 31, 2022 $46 per share 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 $1502000. What amount of compensation expense should Waterway recognize as a result of this plan for the year ended December 31, 2021 under the fair value method? $2627000. $1502000. $1652000. $ 751000. 000