On December 31, 2017, Oriole Company granted some of its executives options to purchase 178000 shares of the companys $10 par common stock at an option price of $50 per share. The Black-Scholes option pricing model determines total compensation expense to be $1347900. The options become exercisable on January 1, 2018, and represent compensation for executives services over a three-year period beginning January 1, 2018. At December 31, 2018 none of the executives had exercised their options. What is the impact on Orioles net income for the year ended December 31, 2018 as a result of this transaction under the fair value method?