On September 30 of Year One, Gracious Inc. issued a total of 2,000 shares of $1 par, restricted common stock to five executives. The fair value of the shares of stock on September 30 is $200,000. The restricted shares require a vesting period of 2 years, which is the requisite service period, and no forfeitures are anticipated.

What is the amount of compensation expense recognized in Year One?

A. $100,000

B. $200,000

C. $25,000

D. $-0-