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CoursHeroTranscribedText: The Birch Corporation reported net earnings of $1,750,000 and there were 750,000 common shares...

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Accounting

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CoursHeroTranscribedText: The Birch Corporation reported net earnings of $1,750,000 and there were 750,000 common shares outstanding in 2020. In addition, had the following items in its capital structure at December 31, 2020, the end of the scal year: 3. Options to purchase 400,000 common shares were outstanding for the entire period. The exercise price is $17.50 per share. The average common share price during the period was $40. b- $3 million par value of 9% debentures (unsecured debt), outstanding for the entire year. Debentures are convertible into ve common shares for each $100 bond. Interest expense of $285,000 was recognized during the year. c. Preferred shares, $5, cumulative, no-par, convertible into common shares at the rate of three shares of common for each one preferred share. Four thousand shares were outstanding for the entire year. No dividends were declared in 2020 on these shares. (1. $8 million par value of 11.5% debentures, outstanding for the entire year. Debentures are convertible into a total of 520,000 common shares. Interest expense of $660,000 was recognized during the year

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