Sarasota AG issues 2,100 convertible bonds at January 1, 2022. The bonds have a 3-year life and are issued at par with a face value of 1,000 per bond, giving total proceeds of 2,100,000. Interest is payable annually at 6%. Each bond is convertible into 250 ordinary shares (par value of 1). When the bonds are issued, the market rate of interest for similar debt without the conversion option is 8%. (a) Compute the liability and equity component of the convertible bond on January 1, 2022. (Round present value factors to 5 decimal places, e.g. 5.21376 and final answers to 0 decimal places, e.g. 5,225.) Present Value of Liability Component Fair Value of Equity Component