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TFD, Inc. granted 344,000 stock options to employees on 12/31/2018 as compensation over the next 2 years. The options had a strike price of $44

TFD, Inc. granted 344,000 stock options to employees on 12/31/2018 as compensation over the next 2 years. The options had a strike price of $44 per share and market prices of $53 on 12/31/2019 and $51 on 12/31/2020. If they originally estimated the original fair value to be $1,720,000.

How much compensation expense should they recognize on 12/31/2020, assuming that the can also be settled for cash?

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