Recording Stock Options: Compensation Expense, Exercise

On January $1$ of Year $1,$ Holiday Inc. offered a stock option incentive plan to a top executive. The plan provided the executive $300$ stock options for Holiday Inc. $$1$ par value, common stock at an option price of $$15$ per share through the expiration date of January $1$ of Year $7.$ The fair value of the options based upon an option$-$pricing model on January $1$ of Year $1,$ is $$9,000.$ The market price at year$-$end of Holiday Inc. stock is $$15$ per share on January $1$ of Year $1,$ and $$18$ on December $31$ of Year $1.$ The requisite service period is $3$ years. The options were not exercised due to the stock price remaining below $$15$ per share after the vesting period.

Record the entry on January $1$ of Year $7$ for the expiration of the stock options.

Note: If a line in a journal entry isn't required for the transaction, select $"$N$/$A$-$debit" and $"$N$/$A$-$credit" as the account names and leave the Dr$.$ and Cr$.$ answers blank $($zero$).$