White Company is a calendar-year firm with operations 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 (graded-vesting). The fair value of the options is estimated as follows:

Vesting Date	Amount Vesting	Fair Value per Option
Dec.31, 2013	20%	$7
Dec.31, 2014	30%	$8
Dec.31, 2015	50%	$12

Under the graded-vesting method, what is the compensation expense related to the options to be recorded in 2014?