$"$On J a n u a ry $1,$ Yea r $1,$ Fiel ds Cor po rat ion gra n ted $100,000$ stock options to certai n execu tives."

$"$Th e opti ons are exercisa bl e no sooner that Decem ber $31,$ Yea r $3$ a n d expi re on J a n ua ry $1,$ Yea r $7.$ Each option ca n be exercised to acq u i re one sha re of $$10$ par common stock for $$15.$ An$"$

appropri ate option$-$pricing mode l estimates t h e fa i r val ue of each opti on to be $$9$ on the d ate

of gra nt$.$

$3.$ What amou nt shou l d Fields recogn ize as com pensation expense for Year $1?$

a$.$ $$0$

b$."$$$300,000"$

c$."$$$450,000"$

d$."$$$900,000"$