On January 1, 20X1, Roberto Company granted Charlie Amp, an employee, an option to buy 1,000 shares of Roberto Co. stock for $30 per share, the option exercisable for 5 years from date of grant. Using a fair value option pricing model, determined the option fair value to be $6 per option. Amp exercised his option on October 1, 20X4 and sold his 1,000 shares on December 1, 20X4. Quoted market prices of Roberto Co. stock in 2021 were:

January 1, 20X1 $30 per share

October 1, 20X4 $36 per share

December 1, 20X4 $40 per share

The service period for the options is for three years beginning January 1, 20X1. As a result of the option granted to Amp, using the fair value method, Roberto should recognize compensation expense for 20X1 on its books in the amount of (6 points)