On 1 July 2013, Nelson Pty Ltd Granted 250 Options

On 1 July 2013, Nelson Pty Ltd granted 250 options to each of its 50 employees. The options are conditional on the employees remaining with the company for the 3 year vesting period. The options have a fair value of $7.50 at vesting date. In addition, the shares will vest as follows:
• On 30 June 2014 if the company’s earnings have increased by more than 12%
• On 30 June 2015 if the company’s earnings have increased by more than 10% averaged across the 2 year period
• On 30 June 2016 if the company’s earnings have increased by more than 8% averaged across the 3 year period

At 30 June 2014 Nelson's earnings have increased by 11% and 3 employees have left.
The company expects that earnings will continue to increase at a similar rate during the year to 30 June 2015 and that the shares will vest at that time. It also expects that a further 4 employees will leave during the year.
The remuneration expense for the year ended 30 June 2014 for Nelson is:

A) $26 875.00
B) $29 375.00
C) $40 312.50
D) $88 125.00