On October 1, 2016, Farmer Fabrication issued stock options for 150,000 shares to a division manager. The options have an estimated fair value of $5 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 3% in three years. Suppose that after one year, Farmer estimates that it is not probable that divisional revenue will increase by 3% in three years.

1.	What is the revised estimate of the total compensation?