Question 8 Partially correct Mark 1.25 out of 1.88 Remove flag Computing EPS: Contingently Issuable Shares On January 1, 2020, to motivate top management, Resume Inc. granted 2,600 options to purchase common stock at $10 per share to key officers if net income increased by 5% in 2020 over the prior year. The fair value of the options on January 1, 2020, is estimated to be $13,000. Resume Inc. reported net income of $130,000 in 2020, which represented a 7% increase over the prior year. How will the options affect the calculation of the company's 2020 diluted earnings per share? Increase the denominator by 100 x shares.