ABC Inc, a Publicly Traded Company, 100,000 Granted Stock Options on on January

Multiple Choice

ABC Inc., a publicly traded company, 100,000 granted stock options on January 1, Year 1, with a total value of $150,000.The option will vest over a three-year period, and employees may exercise their options as of year 4.On December 31, Year 1, it is estimated that 80% of the options will fully vest.During Year 2, an executive suddenly quit, forfeiting 20,000 options.On December 31st, Year 2 the estimate of the number of options that will fully vest by the end of Year 3 was revised to 50,000.The December 31st, Year 2 year-end accrual required with respect to these stock options would include a compensation expense amount of:

A) $10,000.
B) $30,000.
C) $20,000.
D) $25,000.