What is the entry to record the expiration of 15% of the options on December 31, Year 5?

A)
APIC—stock options
36,000

APIC—Expired Stock options

36,000

B)
APIC—stock options
36,000

Retained Earnings

36,000

C)
APIC—stock options
36,000

Compensation expense

36,000

D)
Stock options receivable
60,000

Common stock

12,000
APIC

48,000

Answer: A
Explanation: A) 80,000 × 15% = 12,000 × $3 = $36,000