Senior Company had 40,000 shares of common stock outstanding during the entire 2020. The average market price of its stock at the same period was $44.26. Senior also had outstanding compensatory share options to purchase 5,000 shares of common stock at $31 per share. The unrecognized compensation cost (net of tax) relating to these share options is $1.25. During 2020 Senior earned $155,000 of income after tax. a. Please show your calculations for Senior Company’s “Diluted Earnings Per Share” in 2020. b. What is the name of the method you use in “a” to complete the “Diluted Earnings Per Share” of Senior Company in 2020? Please briefly explain the method with its key points.