An excerpt from the statement of financial position of Sheridan Limited follows: SHERIDAN LIMITED Selected Statement of Financial Position Information At December 31, 2020 Long-term debt Notes payable, 10% 4% convertible bonds payable 6% convertible bonds payable Total long-term debt $5,279,000 1,972,000 2,832,000 $10,083,000 Shareholders' equity $0.69 cumulative, no par value, convertible preferred shares (unlimited number of shares authorized, 590,300 shares issued and outstanding) $2,951,500 Common shares, no par value (7,361,700 shares authorized. 2,920,900 shares issued and outstanding) 24,007,000 Contributed surplus Retained earnings Total shareholders' equity 218,900 7,649,200 $34,826,600 Notes and Assumptions December 31, 2020 1. 2. 3. Options were granted/written in 2019 that give the holder the right to purchase 105,000 common shares at $8 per share. The average market price of the company's common shares during 2020 was $14 per share. The options expire in 2028 and no options were exercised in 2020. The 4% bonds were issued in 2019 at face value. The 6% bonds were issued on June 1, 2020, at face value. Each bond has a face value of $1,000 and is convertible into 100 common shares. The convertible preferred shares were issued at the beginning of 2020. Each share of preferred is convertible into one common share. 4. The average income tax rate is 25%. 5. The common shares were outstanding during the entire year. 6. Preferred dividends were not declared in 2020. 7. Net income was $2,446,900 in 2020. 8. No bonds or preferred shares were converted during 2020.