On January 1, 2018, Western Wear, Inc. granted 100,000 stock options to its employees. of these options, 30% will vest on December 31, 2018, 30% will vest on December 31, 2019, and remaining 40% will vest on December 31, 2020. The fair value of the options was $15.34 per share using a weighted-average expected life. The fair value of the 30,000 shares that vest in 2018 is $14.67 per share. The fair value of the 30,000 shares that vesting 2019 is $15.38 per share and the fair value of the remaining options is $16.30 per share in 2020. Western records stock-based compensation by adjusting for estimated forfeitures. However, Western does not expect any forfeitures for these options.

Prepare a memo to the file addressing Western Wear's compensation expense for 2018 through 2020. Use the Codification for support.