On December 31,2020, Crane Company granted some of its executives options to purchase 177000 shares of the company's $10 par common stock at an option price of $50 per share. The Black-Scholes option pricing model determines total compensation expense to be $1348500. The options become excercisable on January 1,2021. At December 31,2021 none of the executives had excercised their options. What is the impact on Crane's net income for the year ended December 31,2021 as a result of this transaction under fair value method?