On January 1, 2021, Clemons Corporation granted 44,000 options to key executives. Each option allows the executive to purchase one share of Clemons' $4.00 par value common stock at a price of $20.00 per share. The options were exercisable within any time within 2021, if the grantee is still employed by the company at the time of the exercise. On the grant date, Clemons' stock was trading at $22.00 per share, and a fair value option-pricing model determines total compensation to be $313,000. On December 1, 2021, 92% of the options were exercised when the market price of Clemons' stock was $22.50 per share. The remaining options lapsed on December 31, 2021 because the executives who held them were no longer employed by Clemons.

The entry to record the expiration of the stock options on December 31, 2021 will include a credit to Paid-in Capital - Expired Stock Options of