On January $1,$ Y$4,$ 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 $31,$ Y$5,$ after the employee completed two years of service. The market prices of Orion's shares were as follows:

January $1,$ Y$4$ $$40$

December $31,$ Y$5$ $$52$

For calendar Y$5,$ Orion should recognize compensation expense of

Question $36$ options:

$$250,000$

$$0$

$$260,000$

$$110,000$