On January 1, 2024, Red Incorporated issued stock options for 240,000 shares to a division manager. The options have an estimated fair value of $6 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 7% in three years. Red initially estimates that it is probable the goal will be achieved. Ignoring taxes, what is compensation expense for 2024 ? Note: Round your answer to the nearest dollar amount. Multiple Choice $0 $240,000 $480,000 $1,440,000