Classification: Elkridge Corporation issued the following financial instruments in \(20 X 4\) :
1. Convertible debentures issued at 103 . The debentures require interest to be paid semiannually at a nominal rate of \(7 \%\) per annum. The debentures are convertible by the holder at any time up to final maturity at a ratio of 10 common shares for each \(\$ 1,000\) principal amount.
2. Convertible debentures issued at par. The company is required to pay interest in cash quarterly at a nominal rate of \(8 \%\) per annum. At maturity, principal must be settled through issuance of common shares valued at \(\$ 20\) per share.
3. Redeemable preferred shares issued to Elkridge's founding family. The shares carry an annual cash dividend at the rate of \(\$ 12\) per share. On or after 1 July \(20 \mathrm{X} 8\), the preferred shareholders may require the company to repurchase the shares at the original issue price plus any unpaid dividends.

Required:
Discuss the appropriate financial statement classification of each of these financial instruments.