on january 1 2018 hugh morris conedy club granted 1.4 million

On January 1, 2018, Hugh Morris Comedy Club (-HMCC) granted 1.4 million stock options to key executives exercisable for 1.4 million shares of the company's common stock at $30 per share. The stock options are intended as compensation for the next three years. The options are exercisable within a four-year period beginning January 1, 2021, by the executives still in the employ of the company No options were terminated during 2018. The market price of the common stock was $32 per share at the date of the grant. HMCC estimated the fair value ofthe options at S6 each. 1% of the options are forfeited during 2019 due to executive turnover What amount should HMCC record as compensation expense for the year ended December 31. 2019, assuming HMCC chooses the option to record forfeitures as they actually occur? Compensation expense 2019