The smaller angle between the hands of a clock at $12:25$ p.m. is: 
$\textbf{(A)}\ 132^\circ 30'\qquad\textbf{(B)}\ 137^\circ 30'\qquad\textbf{(C)}\ 150^\circ\qquad\textbf{(D)}\ 137^\circ 32'\qquad\textbf{(E)}\ 137^\circ$
At $12:25$, the minute hand is at $\frac{25}{60}\cdot 360^\circ$, or $150^\circ$.
The hour hand moves $5$ 'minutes' every hour, or $\frac{5}{60}\cdot 360 = 30^\circ$ every hour. At $30^\circ$ every hour, the hour hand moves $\frac{1}{2}$ minutes on the clock every minute. At $12:25$, the hour hand is at $\frac{25}{2}^\circ$. Therefore, the angle between the hands is $150^\circ - \frac{25}{2}^\circ$, $137.5^\circ$, or $137^{\circ} 30^{'} \implies$ $\boxed{\mathrm{(B) 137^\circ 30'}}$.