On January 1, Year 1, Houston Company' board of director granted 12,000 stock options to a select number of senior employees. The requisite service period is three years, with one-third vesting at the end of each calendar year (graded vesting). An option pricing model was used to calculate a fair value of $5 or each option on the grant date. The company assumes all 12,000 options will vest (i.e., three will be no forfeitures)

(Required) Determine the amounts to be recognized as compensation expense in Yeat 1, Year 2, and Year 3 under (a) IFRS and (b) U.S. GAAP.