On January $1,2024,$ J$.$ Golden Corporation granted an employee an option to purchase $8,500$ shares of J$.$ Golden's $$4$ par common stock at $$23$ per share. The options became exercisable on December $31,2025,$ after the employee completed two years of service. The option was exercised on January $10,2026.$ The market prices of J$.$ Golden's stock were as follows: January $1,2024,$ $$31$; December $31,2025,$ $$56$; and January $10,2026,$ $$45.$ An option pricing model estimated the value of the options at $$10$ each on the grant date. For $2024,$ J$.$ Golden should recognize compensation expense of: $$34,000.$$$131,750.$$$42,500.$$$0$