The following transactions have also occurred at Martinez. 1. Options were granted on July 1, 2019, to purchase 220,000 shares at $14 per share. Although no options were exercised during fiscal year 2020 , the average price per common share during fiscal year 2020 was $20 per share. 2. Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2019. 3. The preferred stock was issued in 2019. 4. There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2020. 5. The 1,020,000 shares of common stock were outstanding for the entire 2020 fiscal year. 6. Net income for fiscal year 2020 was $1,490,000, and the average income tax rate is 20%