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Cellular Service Inc. (CSI) had 500,000 common shares outstanding during all of 2020. For the year ended 31 December 2020 , CSI had a net

Cellular Service Inc. (CSI) had 500,000 common shares outstanding during all of 2020. For the year ended 31 December 2020 , CSI had a net income of $3.0 million. At year-end 2020 , CSI also had options outstanding on 300,000 shares with strike price of $15 per share. The average stock price of CSI during 2020 was also $20, so the options were in-the- money. For purposes of computing fully diluted EPS, how many shares would be used in the denominator?

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