Sea Products Corp. (SPC) reported $6,520,000 of earnings from continuing operations for the 20X4 fiscal year, and an after-tax loss from discontinued operations of $6,110,000. Preferred dividends and a common dividend of $1 per share were declared in 20X4. The average common share price was $24 during the period (adjusted for the split; see below), and the tax rate was 25%.

SPC reported the following financial instruments as part of its capital structure at the end of 20X4:

1. 5,240,000 common shares outstanding. Of these, 2,620,000 had been issued as a 2-for-1 stock split on 1 October 20X4. The terms of all share contracts were adjusted to reflect the split, and adjusted values are given in the information that follows.

2. $5,170,000 of bonds payable, convertible into 137,000 common shares beginning in 20X2 at the option of the investor. The bonds are reported as a liability, with a discount, and as an element of equity. Interest paid this year was $257,000, and there was $59,100 of discount amortization recorded.

3. 770,000 preferred shares, with a $4 per share cumulative dividend. There had been 717,000 shares outstanding at the beginning of 20X3. In January, 270,000 shares, with an average issuance price of $642,000, were retired for $733,000.

4. Options outstanding: 167,000 shares at an option price of $15, exercisable beginning in 20X7; 517,000 shares at an option price of $10, exercisable beginning in 20X2; 217,000 shares at an option price of $9, exercisable beginning in 20X3.

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