On January 1, Year 1, Sweeney Company granted an employee options to purchase 100 shares of Sweeney's common stock at $40 per share. The options became exercisable on December 31, Year 1, after the employee had completed 1 year of service and were exercised on that date. Market prices of the stock and fair values of the options were as follows: Market Price of Stock Fair Value of Options January 1, Year 1 $50 $61 December 31, Year 1 $65 $75 What amount should Sweeney recognize as compensation cost for Year 1