On January $1,20$X$1,$ Watauga Industries granted stock options to company officers for the purchase of $40,000$ shares of the company's $$1$ par value common stock at $$25$ per share as additional compensation for services to be rendered over the next two years. The market price of common stock was $$30$ per share at the date of grant. The options are exercisable during a four$-$year period beginning January $1,20$X$4$ by grantees who remain employees of Watauga. The company used the Black$-$Scholes option$-$pricing model to determine total compensation expense of $$360,000.$

The journal entry to record $20$X$1$ compensation expense for the options would include a credit to the Paid$-$in Capital$-$Stock Options for

$$80,000.$

$$180,000.$

$$360,000.$

$$40,000.$

Attempts: $0$ of $1$ used