Company A gives its employees stock options on Day 1, Year 1. It follows GAAP, and records a related expense of $500,000 over the life of the options. However, because Company A's stock price is depressed, no employee ever exercises the options. They expire unused. What is the proper accounting for Company A when the options expire? It needs to restate the prior years' income, to reverse the $500,000 in recorded expenses It does not restate prior years' income, but shows a $500,000 positive item in current year income to reflect the expiration of the options It neither restates prior years, nor shows a positive item in current year income