TealLtd reported Long-Term Liabilities and Shareholders' Equity in its December 31, 2021 balance sheet as follows:

Long Term Liabilities:

Bonds Payable $2,100,000

6% interest, convertible to40common shares/$1,000 bond

Bonds Payable$5,400,000

9% interest, convertible to40common shares/$1,000 bond

Shareholders' Equity:

Class A Preferred shares

no par value, $3dividend, cumulative,

each preferred share convertible into 8 common shares,

270,000authorized, issued and outstanding $2,160,000

Class B Common shares

No-par,2,800,000authorized, issued and outstanding $5,600,000

All of the above reported bonds payable, preferred shares and common shares were outstanding throughout fiscal 2021. No transactions involving the bonds payable, preferred shares or common shares occurred during fiscal 2021, except for interest on the bonds payable. The bonds payable were all issued and sold at par. Preferred dividends had not been declared in fiscal 2020.

Tealalso had Class B common stock written call options to purchase90,000common shares at $6.00pershare outstanding throughout fiscal 2021. No options were exercised during fiscal 2021.

The fair market value ofTeal's common shares was $9.00per share throughout fiscal 2021.Teal's income tax rate is 15%.

The weighted average of common shares outstanding for 2021 was2,800,000common shares, andTealearned net income of $4,200,000.