before payroll taxes what amount should wall recognize as expense in 2007 under sfas 605406

Wall Corp.’s employee stock purchase plan specifies the following:

• For every $1 withheld from employees’ wages for the purchase of Wall’s common stock, Wall contributes $2.
• The stock is purchased from Wall’s treasury stock at market price on the date of purchase.

The following information pertains to the plan’s 2007 transactions:

align=”left”>

Before payroll taxes, what amount should Wall recognize as expense in 2007 under SFAS 123(R) for the stock purchase plan?

1. $1,050,000
2. $ 900,000
3. $ 700,000
4. $ 550,000