Horizon 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. Horizon s common shares have a market price of $10 per share on January 1, 2015, the grant date, and at December 31, 2016, averaging $10 throughout the year. When calculating diluted EPS at December 31, 2016, the net increase in the denominator of the EPS fraction will be:

0 shares.

60,000 shares.

120,000 shares.

180,000 shares.