Knowledge Check 01 At January 1, Year 1, Edwards Company issued 10,000 stock options permitting employees to buy 10,000 shares of stock for $50 per share. The vesting schedule (graded-vesting) and value of the options that vest over the 3-year period is estimated at January 1, Year 1 as set forth in the following table. Amount Vesting Vesting Date Dec. 31, Year 1 Dec. 31, Year 2 Dec. 31, Year3 10% 38% 68% Fair Value per Option $ 2 $ 3 $ 4 What is the compensation cost for Year 1 relating to these stock options? (Do not use the straight-line method.,) Compensation cost for Year 1