On January 1, Year 1, Freeman Corporation granted stock options to key employees which allowed these employees to purchase 140,000 shares of the corporation's common stock at $30 per share. These options are intended to compensate employees for the next three years. The options may be exercised within a four-year period beginning January 1, Year 4, by the grantees still employed by the company. No options were terminated during Year 1, but Freeman does have an experience of 7% forfeitures over ock options. The market price of the stock was $35 per share at the date of grant. Freeman used an appropriate pricing model and estimated the value of an option at $15. What amount should be charged to compensation expense for the year ended December 31, Year 1? (Do not round intermediary calculations. Only round your final answer to the nearest dollar.) O A. $700,000 OB. $651,000 OC. $4,200,000 OD. $2,100,000