On January 1, 2019, Stoner Corporation granted compensatory share options to key employees for the purchase of shares of the company’s common stock at $25 per share. The options are intended to compensate employees for the next 2 years. The options are exercisable within a 4-year period beginning January 1, 2021, by grantees still in the employ of the company. The fair value of each option was $7 on the date of grant. Stoner expects to distribute 10,000 shares of treasury stock when options are exercised. The treasury stock was acquired by Stoner during 2018 at a cost of $28 per share and was recorded under the cost method. How much should Stoner charge tocompensation expense for the year ended December 31, 2019?
a. $70,000
b. $35,000
c. $30,000
d. $15,000