Schmidt Electronics Schmidt Electronics offered an incentive stock plan to its employees. On January 1, Year 1, options were granted for 80,000 $1 par common shares. The exercise price equals the $6 market price of the common stock on the grant date. The options cannot be exercised before January 1, Year 4, and expire on December 31, Year 5. Each option has a value of $3 based upon an option pricing model. What is the entry to record the expiration of 15% of the options on December 31, Year 5?

A. APIClong dash stock options 36,000

Compensation expense 36,000

B. Stock options receivable 60,000

Common stock 12,000 APIC 48,000

C. APIClong dash stock options 36,000

Retained Earnings 36,000

D. APIClong dash stock options 36,000

APIClong dash Expired Stock options 36,000