On December 31, 20X0, Kessler Company granted six executives options for each to purchase 10,000 shares of the company's $10 par common stock at an option price of $50 per share (a total of 60,000 options). The options become exercisable on January 1, 20X1, and represent compensation for executives' services over a three-year period beginning January 1, 20X1. The Black-Scholes option pricing model determines the option fair value to be $1. Through December 31, 20X2, none of the executives had exercised their options, but one of the executives left the company during 20X2. What is the impact on Kessler's net income for the year ended December 31, 20X2 as a result of this transaction under the fair value method? (6 points)