On January $1,$ Green Co$.$ granted Joe Buck, an employee, an option to buy $5,000$ shares of Green Co stock for $$25$ per share, the option exercisable for $5$ years from date of grant. Using the fair value option pricing model, total compensation expense is determined to be $$37,500.$ Buck exercised his option on September $1,$ and sold his $5,000$ shares on December $1.$ Quoted market prices of Green Co$.$ stock during the year were

January $1=$ $$25$ per share; September $1=$ $$30$ per share; December $1=$ $$34$ per share

The service period is for three years beginning January $1,20$Y$1.$ As a result of the option granted to Buck, using the fair value method, Green should recognize compensation expense for $20$Y$1$ on its books in the amount of$...$

Group of answer choices

$$12,500$

$$7,500$

$$37,500$

$$45,000$