On April 1, XYZ Inc granted 6,760 stock options to executives. Each option entitles the holder to purchase one share of the company's common shares at $38.77 per share. The market price of the shares is $58.23 per share on the date of grant, and the required service period is two years. Assume that each option's fair value as calculated using an option pricing model is $21.39 per option. Ignore forfeitures for simplification purposes. How much total compensation expense will be recorded in the current year for the employee stock options granted on April 1? Assume a December 31 year end.

Question 16 options:

	$51,512
	$52,868
	$54,224
	$55,579
	$56,935