A company granted compensation through restricted shares to four of its executives, with a market value of $ 600,000 and a period of service of four years. When granting the compensation plan, the company made the following entry:

Deferred compensation 600,000

Common srock 30,000

Paid-in capital in excess of par value 570,000

In each of the first two years the company made the following entry:

Compensation expense 150,000

Deferred compensation 150,000

During the third year, one of the executives resigned from the company and, therefore, from compensation. At the end of the third year, the company will make the following entry:

a. Compensation expense 150,000

Deferred compensation 150,000

b. Deferred compensation 150,000

Compensation expense 150,000

c. Common stock 7,500

Additional paid-in capital 142,500

Compensation expense 75,000

Deferred compensation 225,000

d. Common stock 7,500

Additional paid-in capital 142,500

Deferred compensation 150,000