On January 1, Year 1, Fields Corporation granted 200 comma 000 stock options to certain executives. The options are exercisable no sooner than December 31, Year 3 and expire on January 1, Year 7. The vesting period is 3 years. Each option can be exercised to acquire one share of $10 par common stock for $15. An appropriate optionminuspricing model estimates the fair value of each option to be $ 12 on the date of grant. What amount should Fields recognize as compensation expense for Year 1?