On 1/1/2023, selected executives of Grass Inc. are granted the option to purchase 20,000 shares of the firm's $1 par common stock for $5 per share during the two-year period beginning 1/1/2025 and ending 12/31/2028 (exercise period). The market price of the stock on the grant date also is $5. To maintain their eligibility for the option plan, the employees must continue to be employed by the firm for four years after the grant date. An option-pricing model at grant date establishes the fair value of one option to be $2.20. Compute the compensation expense recognized in 2023 and 2024.