Gregory's on Ormond, Inc. grants its president 2,000 stock options on January 1, Year 1, that give him rights to purchase shares of the company for $40 per share on December 31, Year 2. At the time the options were granted, the fair value of the options totaled $20,000. At December 31, Year 1, the company's stock sold for $45 per share and at December 31, Year 2, the selling price of the stock was $55 per share. On December 31, Year 2, the president resigned from the company and did not elect to exercise the options. In its Year 2 financial statements, Gregory's on Ormond would recognize compensation expense relative to the options of:
A. ($10,000)
B. $0
C. $10,000
D. $15,000