On January 1, 2017, Saul Group, Inc. granted 2,000 stock options to its senior employees. The options vest in equal installments over three years with 1/3 vest in 2017, 1/3 in 2018, and 1/3 in 2019. The company is experiencing the cost of the options on a straight-line basis over the three-year period at $20,000 per year (2,000 options x $30 / 3 = $20,000)

How is the amount of compensation expense treated in 2017 and subsequent years under (1) U.S. GAAP and (2) IFRS? Present journal entries.