Horrocks Company Granted 180,000 Restricted Stock Awards of Its No

Multiple Choice

Horrocks Company granted 180,000 restricted stock awards of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. Horrocks' common shares have a market price of $10 per share on January 1, 2012, the grant date, and at December 31, 2013, averaging $10 throughout the year. When calculating diluted EPS at December 31, 2013, the net increase in the denominator of the EPS fraction will be:

A) 0 shares.
B) 60,000 shares.
C) 120,000 shares.
D) 180,000 shares.