A company has 10,000 unvested stock options with an exercise price of $20. The company expects that 10% of the options will not vest. The remaining unrecognized compensation expense is $50,000 if all options vest and $45,000 allowing for forfeitures. The average stock price for the year is $25 per share.

What is amount of cash proceeds the company will use in the calculation of incremental shares for diluted EPS?

$225,000

$180,000

$250,000