On October 31, 2020, Dunder Mifflin Paper Inc. issued $4 million of 10-year, 8% convertible bonds for $4.6 million. The bonds pay interest on April 30 and October 31 and mature on October 31, 2030. Each $1,000 bond can be converted into 80 no par value common shares. In addition, each bond included 20 detachable warrants. Each warrant can be used to purchase one common share at an exercise price of $15. Immediately after the bond issuance, the warrants traded at $3 each. Without the warrants and the conversion rights, the bonds would have been expected to sell for $4.2 million.

On April 23, 2023, half of the warrants were exercised. The common shares of Dunder Mifflin Paper Inc. were trading at $20 each on this day.

Immediately after the payment of interest on the bonds, on October 31, 2025, all bonds outstanding were converted into common shares. Assume the entity follows IFRS.

a.)Prepare the journal entry to account for the exercise of the warrants on April 23, 2023. How many common shares were issued in this transaction?

b.) What is the journal entry to account for the bond redemption on October 31, 2025?

c.) How many shares were issued on October 31, 2025? What do you believe was the likely market value of the common shares as at the date of the conversion, October 31, 2025? Round to the nearest cent