Arens Jones is the controller at KLM Pharmaceutical Industries, a public company. She is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Camden's external financial statements. The following is selected financial information for the fiscal year ended June 30, 2023 KLM Pharmaceutical Industries Statement of Financial Position June 30, 2023 Long-term debt Notes payable, 10% 10% bonds payable 7% convertible bonds payable Total long-term debt $1,000,000 5,000,000 6.000.000 $12.000.000 Shareholders' equity Preferred shares, $4.25 cumulative, 100,000 shares authorized, 20,000 shares issued and outstanding $ 1,000,000 Common shares, unlimited number of shares authorized, 1,100,000 shares issued and outstanding Contributed surplus-conversion rights Retained earnings Total shareholders' equity The following transactions have occurred at Camden: 4,950,000 500,000 6,000,000 $12,450,000 1. Options were granted by the company in 2021 to purchase 100,000 shares at $15 per share. Although no options were exercised during 2023, the average price per common share during fiscal year 2023 was $20. 2. Each bond was issued at face value. The 7% convertible debenture will convert into common shares at 50 shares per $1,000 bond. It is exercisable after five years and was issued