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At January 1, 2016, Ginobili Company had issued 44,000 executive stock options permitting executives to buy 44,000 shares of stock for $20. The fair value of the options and vesting schedule is estimated as follows:

Vesting Amount Fair Value

Date Vesting per Option

Dec. 31, 2016 10% $ 5

Dec. 31, 2017 30% $ 7

Dec. 31, 2018 60% $10

Assuming Ginobili prepares its financial statements in accordance with International Financial Reporting Standards, what is the compensation expense related to the options to be recorded in 2017?