Exhibit 16-3 on January 1, 2010, Hilltop, Inc $\quad 12,000$ Common Stock Option Warrants

Exhibit 16-3 On January 1, 2010, Hilltop, Inc.granted to a key executive a fixed compensatory option plan for 1, 000 shares of $4 par common stock for $30 a share.The fair value per option on that date was $12 per option.The service period extended through December 31, 2011.
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Refer to Exhibit 16-3.What entry, if any, was required on December 31, 2010?

A) no entry was necessary
B)
Compensation Expense $\quad 12,000$
Common Stock Option Warrants $\quad 12,000$
C)
Compensation Expense $\quad 6,000$
Common Stock Option Warrants $\quad 6,000$
D)
Compensation Expense $\quad 9,000$
Deferred Compensation $\quad$ $\quad$ $\quad$ 9,000