On January 1, 2011 (The Date of Grant), Henrik Co

On January 1, 2011 (the date of grant) , Henrik Co.issues 2,000 shares of restricted shares to its executives.The fair value of these shares is $75,000, and their par value is $10,000.The shares are forfeited if the executives do not complete 3 years of employment with the company.Assuming the service period is three years, how much compensation expense will Henrik Co.record on January 1, 2011?

A) $25,000.
B) $-0-
C) $3,333.
D) $21,667.