On June 30, 2018, some of North Corporation’s key employees were granted compensatory stock options for 100,000 shares of the firm’s $10 par value common stock. As of that date, the market price of North’s common stock was $38 per share, and the option price was $34. Using the Black-Scholes model, North determined the total compensation expense associated with the options was $975,000. The options became exercisable on January 1, 2021, and they expired on June 30, 2022. North’s employees exercised their options for all 100,000 shares on January 4, 2021, when the market price for the firm’s stock was $41 per share. If North uses the fair value method, it should record compensation expense of for the 2020 calendar year.