On January $1,2021$ Reese Company granted Jack Buchanan, an employee, an option to buy $300$ shares of Reese Co$.$ stock for $$40$ pe share, the option exercisable for $5$ years from date of grant. Using a fair value option pricing model, total compensation expense is determined to be $$4800.$ Buchanan exercised his option on September $1,2021,$ and sold his $300$ shares on December $1,2021.$ Quote market prices of Reese Co$.$ stock during $2021$ were:

January $1,$$$40$ per share

September $1$ $$48$ per share

December $1$ $$54$ per share

The service period is for two years beginning January $1,2021.$ As a result of the option granted to Buchanan, using the fair value method, Reese should recognize compensation expense for $2021$ on its books in the amount ofHui