Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2018, options were granted for 60,000 $1 par common shares. The exercise price equals the $5 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2021, and expire December 31, 2022. Each option has a fair value of $1 based on an option pricing model.

What is the entry to record the expiration of 10% of the options on December 31, 2022?

Stock options receivable	30,000
Common stock		6,000
Paid-in capitalexcess of par		27,000

B)

Paid-in capitalstock options	6,000
Compensation expense		6,000

C)

Paid-in capitalstock options	6,000
Retained earnings		6,000

D)

Paid-in capitalstock options	6,000
Paid-in capitalexpired stock options		6,000