On January $1,2024,$ Sherwood Company granted $95,000$ stock options to certain executives. The options are exercisable no sooner than December $31,$

$2026,$ and expire on January $1,2030.$ Each option can be exercised to acquire one share of $$1$ par common stock for $$9.$ An option$-$pricing model

estimates the fair value of the options to be $$4$ on the date of grant.

If unexpected turnover in $2025$ caused the company to estimate that $10\%$ of the options would be forfeited, what amount should Sherwood recognize as

compensation expense for $2025?$

Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.

Multiple Choice

$$31,667$

$$47,500$

$$101,333$

$$126,667$