Adam Michigan Has Been a Tremendous Asset to Wacker Entity

Adam Michigan has been a tremendous asset to Wacker Entity, which provides legal services. This year, Adam has been awarded stock options for his contributions. His stock options were granted on August 5 and were worth $500,000 on that date. At the end of the reporting period, they were worth $550,000. Wacker Entity estimates that the options will be worth $1 million on the vesting date in two years. At the end of the reporting period, which amount will be recorded on Wacker's books?

A) DR $500,000 expense
B) DR $550,000 expense
C) CR $550,000 share options
D) DR $1,000,000 expense
E) None of the above