On January 1, 2020, Orion Corp

Multiple Choice

On January 1, 2020, Orion Corp. granted an employee an option to purchase 5,000 of Orion's no par value common shares at $ 50 per share. The Black-Scholes option pricing model determined total compensation expense to be $ 220,000. The option became exercisable on December 31, 2021, after the employee completed two years of service. The market prices of Orion's shares were as follows: For calendar 2021, Orion should recognize compensation expense of

A) $ 0.
B) $ 50,000.
C) $ 110,000.
D) $ 250,000.