- VI- On January1, 2021, Phil Company had 200,000 shares of common stock outstanding and 60,000 shares of 8%, $50 par, cumulative preferred stock outstanding. On April 1, Phil purchased 30,000 shares of common stock as treasury stock for $50 per share. It sold 10,000 treasury shares on October 1, at $55 per share. Net income for 2021 was $7,200,000. 6 million dollars of 6% bonds were issued at face value on January 1, 2021. Those bonds are convertible into common stock, in a ratio of 3:1. None of them had been converted by December 31. Also outstanding in 2021 were stock options giving executives the right to buy 40,000 common shares at $25. During 2021, the average market price of tax rate is 30%. One-half of the executives exercised their stock options, on September 1. the common shares was $30 with a closing price of $32 on December 31. The company's