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On December 31, 2018, Glen, Inc. granted 100,000 compensatory stock options to the CEO and the CFO. The options are exercisable by the executives for

On December 31, 2018, Glen, Inc. granted 100,000 compensatory stock options to the CEO and the CFO. The options are exercisable by the executives for 2 years beginning on January 2, 2022, as long as the executive remains with the company through December 31, 2021. The exercise price is $10 a share, and the company's common stock has a $4 par value. The Black-Scholes option pricing model indicates that the total compensation expense should be $2,000,000. The market price per share for certain dates is given below: December 31, 2018 $10 December 31, 2019 15 December 31, 2020 20 What is the amount of compensation expense that would be recorded on these options for 2019? $___________________

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