On October 1, 2024, Halsey Company issued stock options for 370,000 shares to a division manager. The options have an estimated fair value of $3 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 5% in three years. Halsey initially estimates that it is probable the goal will be achieved. How much compensation will be recorded in each of the next three years? Multiple Choice $0 $123,333 $370,000 $1,110,000