On January 1, 2020, Vaughn Manufacturing granted an employee an option to purchase 15000 shares of Vaughn's $5 par value common stock at $20 per share. The Black-Scholes option pricing model determines total compensation expense to be $349000. The option became exercisable on December 31, 2021, after the employee completed two years of service. The market prices of Vaughn's stock were as follows: January 1, 2020 $30 December 31, 2021 50 For 2021, should recognize compensation expense under the fair value method of $225000. $174500. $75000. $0. C M Q