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Loral Co$.$ sponsors a stock option incentive plan to purchase common stock for key employees. The plan allows the purchase of one share of $$1$ par value common stock at an option price of $$30$ per share. Using an option$-$pricing model, at the grant date the fair value of the options granted was $$155,000.$ The options are exercisable starting two years from the date of grant which is the requisite service period. On July $1,$ Year One, $1,500$ options were granted to employees when the market price was $$30$ per share. Employees exercised $1,000$ options, when the market price of the stock was $$45$ per share on July $1,$ Year Three.

What amount of compensation expense is recognized in Year One, Year Two, and Year Three?

Select one:

a$.$ Year One Year Two Year Three

b$.$

$\backslash$table$[[$Year One,Year Two,Year T$],[$$$155,000,$$$0,$$$0]]$

c$.$

$\backslash$table$[[$Year One,Year Two,Year Three$],[$$$51,667,$$$51,667,$$$51,666$