On January 1, 2021, Evet Inc. established a stock appreciation rights plan for its executives. It entitled them to receive tash for the differente between the market price of its common stock and a pre-established price of $20 on 50,000 SARs. Market values of the SARS are as follows:

January 1, 2021 $14 per share

December 31, 2021 15 per share

December 31, 2022 10 per share

December 31, 2023 13 per share

Compensation expense relating to the plan is to be recorded over a 4-year period beginning Jan. 1, 2021. What amount of compensation expense should Evet recognize for the year ended Dec.31, 2022?

A. $187,500

B. $62,500

C. $75,000

D. $250,000