On January 1, 2024, Farmer Fabrication issued stock options for 320,000 shares to a division manager. The options have an estimated fair value of $8 each. To provide additional incentive for managerial achievement, the options are not exercisable unless Farmer Fabrication's stock price increases by 4% in three years. Farmer initially estimates that it is not probable the goal will be achieved. How much compensation will be recorded in 2024, 2025, and 2026? Answer is complete but not entirely correct. $ 2,560,000 each year Compensation

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