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Oriole Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended

May $31,2020,$ and May $31,2021.$ The income from operations for the fiscal year ended May $31,2020,$ was $$1,827,000$ and income

from operations for the fiscal year ended May $31,2021,$ was $$2,536,000.$ In both years, the company incurred a $10\%$ interest expense

on $$2,376,000$ of debt, an obligation that requires interest$-$only payments for $5$ years. The company experienced a loss from

discontinued operations of $$585,000$ on February $2021.$ The company uses a $20\%$ effective tax rate for income taxes.

The capital structure of Oriole Corporation on June $1,2019,$ consisted of $1,018,000$ shares of common stock outstanding

and $19,200$ shares of $$50$ par value, $7\%,$ cumulative preferred stock. There were no preferred dividends in arrears, and the company

had not issued any convertible securities$,$ options, or warrants.

On October $1,2019,$ Oriole sold an additional $507,000$ shares of the common stock at $$20$ per share. Oriole distributed a $20\%$ stock

dividend on the common shares outstanding on January $1,2020.$ On December $1,2020,$ Oriole was able to sell an

additional $817,000$ shares of the common stock at $$22$ per share. These were the only common stock transactions that occurred

during the two fiscal years.

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