White company is a calendar year firm with operation in several countries. At January 1, 2013, the company had issued 80,000 executive stock options permitting executives to buy 40,000 shares of stock for $25. The vesting schedule is 20% the first year, 30% the second year, and 50% the third year(gradedvesting). The fair value of the options is estimated as follows. What is the compensation expense relate4d to the options to be recorded in 2014?

2013 7

2014 8

2015 12