On January 1, 2024, Donnelly Company granted 96,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2026, and expire on January 1,2030 . Each option can be exercised to acquire one share of $1 par common stock for $8. An option-pricing model estimates the fair value of the options to be $4 on the date of grant. What amount should Donnelly recognize as compensation expense for 2024? Note: Round your answer to the nearest dollar amount. Multiple Choice $128,000 $160,000 $64,000 $32,000