Coronado Industries issued 7600, 5-year convertible bonds of $2,000 each for $3550000 at the beginning of 2018. The bonds have a stated rate of interest of 9% and interest is payable annually. Each bond can be convertible into 100 shares with a par value of $10. The market rate of similar nonconvertible debt is 10%.

Determine the fair value of the equity component using the "with-and-without" method is:

$2204195

$1212161

$3415356

$ 134644