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Pharoah Inc. has 1.05 million common shares outstanding as at January 1, 2020. On June 30, 2020, 4% convertible bonds were converted into 115,000 additional shares. Up to that point, the bonds had paid interest of $285,000 after tax. Net income for the year was $1,299,962. During the year, the company issued the following:


On February 1, Pharoah also purchased in the open market 12,090 call options on its own shares, allowing it to purchase its own shares for $31. Assume the average market price for the shares during the year was $39.


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