The JRM Co. granted its employees 1,000,000 shares of stock on January 1, Year 1. On the grant date, the fair value of each share was $36. The shares cliff vest at the end of 3 years, and no forfeitures are expected. Management expects that all shares will vest because the staff performance indicates a successful 3-year period. The fair values of the stock on the following dates were: December 31, Year 1: $39 December 31, Year 2: $45 December 31, Year 3: $48 (estimated)