Kingbird Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended August 31, 2020, and August 31, 2021. The income from operations for each year was $1,230,000 and $1,660,000, respectively. In both years, the company incurred a 6% interest expense on $3,000,000 of debt, an obligation that requires interest-only payments for 5 years. The company experienced a hurricane loss of $370,000 in its Sandy facility in September 2020, which was determined to be an unusual loss and was not included in the income from operations amount. The company uses a 40% effective tax rate for income taxes. The capital structure of Kingbird Corporation on September 1, 2019, consisted of 1,870,000 shares of common stock outstanding and 55,000 shares of $100 par value, 5%, cumulative preferred stock. There were no preferred dividends in arrears, and the company had not issued any convertible securities, options, or warrants. On December 1, 2019, Kingbird sold an additional 380,000 shares of the common stock at $33 per share. Kingbird distributed a 10% stock dividend on the common shares outstanding on January 1, 2020. On March 1, 2021, Kingbird was able to sell an additional 760,000 shares of the common stock at $35 per share. These were the only common stock transactions that occurred during the two fiscal years.