Crane Company had 75000 shares of treasury stock ($10 par value) at December 31, 2020, which it acquired at $11 per share. On June 4, 2021, Crane issued 37500 treasury shares to employees who exercised options under Crane's employee stock option plan. The market value per share was $11 at December 31, 2020, $13 at June 4, 2021, and $16 at December 31, 2021. The stock options had been granted for $10 per share. The cost method is used. What is the balance of the treasury stock on Crane's balance sheet at December 31, 2021?

$412500.

$337500.

$187500.

$375000.