Calculating EPS and Recording Entries for Restricted Stock Awards

As an incentive to retain key employees, on January $1,$ the board of directors of Master Corp. granted restricted stock awards to $5$ executives to acquire $1,200$ shares each under the following terms.

Restricted stock awards vest in three years on December $31.$ Grantees must remain employed with Master Corp. to receive the common shares for $3$ years $($the requisite service period$)$ for the shares to be fully vested.

Each stock award represents one share of $$10$ par, common stock of Master Corp.

Master Corp. has $24,000$ common shares outstanding during the year. Net income for the year was $$120,000.$ On tifle date of grant, the common shares were trading at $$20$ per share. During the year, the average price of its common stock was $$20.$

Required

Note: Round answers to the nearest whole number.

D$.$ Calculate diluted EPS