On January 1, 2020, Orion Corp. granted an employee an option to purchase 5,000 of Orion's no par value common shares at $50 per share. The Black-Scholes option pricing model determined total compensation expense to be $220,000. The option became exercisable on December 31, 2021, after the employee completed two years of service. The market prices of Orion's shares were as follows:

January 1, 2020

$40

December 31, 2021

$52

For calendar 2021, Orion should recognize compensation expense of

$250,000.

$0.

$110,000.

$50,000.