On January $2,2025,$ for past services rendered, Pharoah Corp. granted Jennifer Davis, its president, $29500$ stock appreciation rights that are exercisable immediately and expire on January $2,2026.$ On exercise, Davis is entitled to receive cash for the excess of the market price of the stock on the exercise date over the market price on the grant date. Davis did not exercise any of the rights during $2025.$ The market price of Pharoah's stock was $\backslash (\backslash$$ $30\backslash )$ on January $2,2025,$ and $\backslash (\backslash$$ $45\backslash )$ on December $31,2025.$ As a result of the stock appreciation rights, Pharoah should recognize compensation expense for $2025$ of

$\backslash$$$177000.$

$\backslash$$$0.$

$\backslash (\backslash$$ $885000\backslash ).$

$\backslash (\backslash$$ $442500\backslash ).$