On January 1, 2011, Evans Company granted Tim Telfer, an employee, an option to buy 1,000 shares of Evans Co. stock for $25 per share, the option exercisable for 5 years from date of grant. Using a fair value option pricing model, total compensation expense is determined to be $7,500. Telfer exercised his option on September 1, 2011, and sold his 1,000 shares on December 1, 2011. Quoted market prices of Evans Co. stock during 2011 were: