Part 1On January​ 1, Year​ 1, Axis Corporation granted employees 45,50045,500 stock options for 45,50045,500 shares of $ 1$1 par value common stock. The exercise price on the date of issue was equal to the market price of $ 20$20. There is a two year vesting period and the options expire in four years. Employees have the right to sell back the shares to the corporation within six months of exercise. At the time of​ issue, the fair value of the options is estimated to be $ 32$32 per option.​ Unfortunately, the company experiences a series of setbacks and the stock price falls in Year 4. At December​ 31, Year​ 4, the options have a fair value of $ 16$16 per option. At the end of four​ years, none of the options have been exercised. What is the appropriate journal entry to record the expiration of the​ options? Part 1 A. [table] APIC minus− Expired Stock Options | 1,456,0001,456,000 | Compensation Expense | | 1,456,0001,456,000 [/table] B. [table] Liability for Stockminus−based Compensation | 728,000728,000 | APIC minus− Expired Stock Options | | 728,000728,000 [/table] C. [table] APIC minus− Expired Stock Options | 728,000728,000 | Compensation Expense | | 728,000728,000 [/table] D. [table] Liability for Stockminus−based Compensation | 728,000728,000 | Common Stock | | 45,50045,500 APIC minus− Common | | 682,500682,500 [/table]