Laurels Co. sponsors a stock option incentive plan to purchase common stock for key employees. The plan allows the purchase of one share of $1 par value common stock at an option price of $30 per share. Using an option-pricing model, at the grant date the fair value of the options granted was $155,000. The options are exercisable starting two years from the date of grant which is the requisite service period. On July 1, Year One, 1,500 options were granted to employees when the market price was $30 per share. Employees exercised 1,000 options, when the market price of the stock was $45 per share on July 1, Year Three. Laurels year ends December 31st.

What was the net change in net stockholders equity in Year Three based upon all entries related to the stock options?

Group of answer choices

Net decrease of $38,750

Net increase of $30,000

Net increase of $132,333

Net increase of $103,333