Recording Performance Based Stock Options

Through a performance share option plan, Anderson Inc. granted executives and other key employees share option awards where vesting is contingent upon meeting company$-$wide performance goals, including

decreasing time for a new product launch and specified sales targets. The options vest over a three$-$year period $($considered the requisite service period$)$ and expire in $6$ years. The company granted $26,000$ options

on January $1$ of Year $1,$ for the purchase of $26,000$ shares at $$30$ per share. The company estimates the fair value of the options to be $$3$ per share based upon an option$-$pricing model. Management believes it is

probable that the company will achieve the specified performance targets defined in the performance share option plan. Record compensation expense $($if any$)$ for Year $1.$

Note: If a journal entry isn't required for the transaction, select $"$N$/$A$"$ as the account names and leave the Dr$.$ and Cr$.$ answers blank $($zero$).$