On January 1, 20X5, Skousen Inc. granted 1,000 stock options to its upper management employees. Each stock option permits the purchase of one share of Skousen common stock at the price of $75 per share (the market price on the grant date is also $75). The options will become exercisable beginning four years from the grant date (if the employees stay with the company the entire four-year period). Using an option-pricing formula, Skousen estimates the grant date value of the stock options to be $20. What amount would Skousen record as Compensation Expense associated with these stock options at the end of the 20X5 year?

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