On January 1, 2016, 70 executives were granted a performance-based share option plan that would award them each a maximum of 300 shares of $5 par common stock for $12 a share based on the increase in sales over the next three years. The fair value per option on the grant date was $16. The award table is as follows:

Increase in Sales/ # of shares

10% 100

15% 200

20% 300

The company estimates that the sales increase will be 22% and that the annual employee turnover rate will be 2%.

Refer to Exhibit 15-7. In 2017 the actual sales increase was determined to be 18%, and the overall turnover rate was exactly 2%. What will be the compensation expense for 2017 is (to the nearest dollar)

$140,552

$35,138

$70,276

$210,828