the following is the capital strueture and partial liablies of Waterton Wafles Watermelon and Worcestershire Co$.$ at December $31,2022$:Current Liabilities:$*$ Notes Payable..$....$ $ $2,000,000$Other various current liabilities$....$ $$5,000,000$Total Current Liabilities.... $ $7,000,000$Long$-$term Liabilities:$5\%$ Convertible debentures due April $15,2026....$ $ $10,000,000$Total long$-$term debt... $ $10,000,000$Shareholders' Equity:$$4$ Cumulative convertible preferred shares, non$-$par; $1,600,000$ shares$$authorized; $580,000$ issued and outstanding.....$$$ $12,000,000$Common Shares, non$-$par, $10,000,000$ shares authorized, $3,490,000$shares issued and outstanding$..\mathrm{.}4\mathrm{.}200,000$Contributed Surplus.... $2,100,000$Retained Earnings..$\mathrm{.}38,250\mathrm{.}000$Total paid in Capital & Retained Earnings.... $$56,100,000$Total Shareholders' Equity.... $$50,650,000$ADDITIONAL INFORMATION:a$.$The $5\%$ convertible debentures were issued at their face value of $$10,000,000$ in $2020.$ The debentures are due in $2026$ and until then are convertible into common stock of Waterton W$\text{'}$s at the rate of $50$ shares for each $$500$ debenture.b$.$The $$4$ cumulative, convertible preferred shares were issued in $2021.$ On July $1,2022,$ and on October $1,2022,$ holders of the preferred shares converted $50,000$ and $20,000$ preferred shares, respectively, into common shares. Each preferred share is convertible into $2$ shares of common stock.c$.$On March $1,2022,$ Waterton W$\text{'}$s issued $400,000$ shares of common stock for land and buildings.d$.$On April $1,2022,300,000$ common shares were cancelled.d$.$ Dividends on the prefered shares have been paid quartety $($MachR$3.$ uno $30,$ Soptember $30,$ &December $31)$ through December $31,2022.$e$.$Stock options were granted$/$written to the president of the corporation on January $1,2022.$ Each of the $20,000$ options permits the holder to purchase one share of common stock for $$10$ per share. The options are exercisable at any time after December $31,2025($within $10$ years$).$ The average market price of the shares during $2022$ was $$12\mathrm{.}50.$ Waterton W$\text{'}$s uses the "Treasury Share method" for accounting for stock options.f$.$ Net income of Waterton Waffles Watermelon and Worcestershire Co$.$ for the year ended December $31,2022,$ was $$4,000,000.$ The income tax rate is $40\%,$ and $10\%$ rate of return after tax is normal for Waterton W$\text{'}$s$.$