Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2018, options were granted for seventy-two thousand $1 par common shares. The exercise price equals the $5 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2021, and expire December 31, 2022. Each option has a fair value of $1 based on an option pricing model.

Which is the correct entry to record compensation expense for the year 2018?