On January 1, 2025, Blossom Company granted Sarah Allen...

On January 1, 2025, Blossom Company granted Sarah Allen, an employee, an option to buy 4900 shares of Blossom Co. stock for $25 per share, with the option exercisable for 5 years from the date of grant. Using a fair value option pricing model, total compensation expense was determined to be $38700. Allen exercised her option on September 1, 2025 and sold her 4900 shares on December 1 , 2025. Quoted market prices of Blossom Co. stock during 2025 were as follows: The service period is three years, beginning January 1, 2025. As a result of the option granted to Allen, using the fair value method, Blossom should recognize compensation expense for 2025 in the amount of $12900.$10300.$38700$49000