Question: On January 1, 2008, Downs Company granted Tim Wright, an employee, an option to buy 1,000 shares of Downs Co. stock for $25 per share,

On January 1, 2008, Downs Company granted Tim Wright, an employee, an option to buy 1,000 shares of Downs Co. stock for $25 per share, the option exercisable from two years after the end of the service period. The service period is for three years beginning January 1, 2008. Using a fair value option pricing model, total compensation expense is determined to be $7,500. Wright exercised his option on September 1, 2011, and sold his 1,000 shares on December 1, 2011. Quoted market prices of Downs Co. stock during were

January 1, 2008 $25 per share

September 1, 2011 $30 per share

December 1, 2011 $34 per share

By how much does total stockholders' equity change as a result of the exercise of the options?

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