On January 1, 2018, Waddle Company adopted a compensatory stock option plan and granted its managers 10,000 options to buy shares of common stock; each option can be used to acquire a share of common stock at a price of $25 a share. The fair value of each option was $7.50 on January 1, 2018. The options can be converted into common stock after July 1, 2018. The required service period is three years. What is the balance in paid-in capital-stock options as of December 31, 2019 assuming that the fair value approach to accounting for stock options is used?
A. $100,000
B. $25,000
C. $50,000
D. $0
Answer: C
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