On January 2, 2014, for Past Services, Rosen Corp

On January 2, 2014, for past services, Rosen Corp. granted Nenn Pine, its president, 25,000 stock appreciation rights that are exercisable immediately and expire onJanuary 2, 2015. On exercise, Nenn 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. Nenn did not exercise any of the rights during 2014. The market price of Rosen's stock was $30 on January 2, 2014, and $45 on December 31, 2014. As a result of the stock appreciation rights, Rosen should recognize compensation expense for 2014 of

A) $0.
B) $150,000.
C) $375,000.
D) $750,000.