David Limited's net income for the year ended December 31,2023 was $629,860 and there were 86,000 common shares outstanding during the entire year. David has the following two convertible securities outstanding: 10% convertible bonds (each $1,000 bond is convertible into 20 common shares) $200,000 5% convertible $100 par value cumulative preferred shares (each share is convertible into two common shares) $110,000 Both convertible securities were issued at face value in 2020. There were no conversions during 2023. and David's income tax rate is 25% (a) Your answer is incorrect. Both convertible securities were issued at face value in 2020 . There were no conversions during 2023, and David's income tax rate is 25% (a) 27 Your answer is incorrect. Calculate the income effect of the dividends on 5% preferred shares