Problem: Yu Company is a calendar-year U.S. firm with operations in several countries. At January 1, 2024, the company had issued 40,000 executive stock options permitting executives to buy 40,000 shares of stock for $25. The vesting schedule is 20% the first year, 30% the second year, and 50% the third year (graded-vesting). The fair value of the options is estimated as follows: Vesting Date Amount Vesting Fair Value per Option December 31, 2024 20% $ 7 December 31, 2025 30% $ 8 December 31, 2026 50% $ 12 Assuming Yu uses the straight-line method, what is the compensation expense related to the options to be recorded in 2025? Multiple Choice $130,667 $200,000 $333,333 $400,000