The following information relates to Foster stock used in capital

$1$

transactions:

$2$

In the second quarter of Year $1,$ Foster issued $600,000$ shares of convertible preferred stock for assets in a purchase transaction. The quarterly dividend on the convertible stock is $$0\mathrm{.}05$ per share, payable at the end of each quarter. Each share is convertible into one share of

$3$

common stock.

$4$

Common shares outstanding at January $1,$ Year $2,$ were $3,300,000.$

$300,000$ shares of common stock were issued for cash on March $31,$ Year $2.$

$8$

The average market price for common stock for the first six months of Year $2$ was $$59$ per share.

Additionally:

$12$

At December $31$ st of year $1,$ Foster Co$.$ issued $4\%$ convertible bonds with a principal of $$10,000,000,$ due in $20$ years, at $$1,000($par$).$ Interest is payable annually on December $31$ st$.$ Each $$1,000$ bond is convertible into $1320$ shares of common stock.

$14$

Foster did not declare or pay any dividends on its common stock for Year