Problem 16-5 xYour answer is incorrect. Try again Amy Dyken, controller at Shamrock Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Shamrock's financial statements. Below is selected financial information for the fiscal year ended June 30, 2017 SHAMROCK PHARMACEUTICAL INDUSTRIES SELECTED BALANCE SHEET INFORMATION JUNE 30, 2017 Printer Version Long-term debt Notes payable, 1090 8% convertible bonds payable 10% bonds payable $990,000 5,030,000 5,880,000 $11,900,000 Total long-term debt Shareholders' equity Preferred stock, 5% cumulative, $50 par value, 107,000 shares authorized, 26,750 shares issued and outstanding $1,337,500 980,000 3,940,000 6,110,000 $12,367,500 Common stock, $1 par, 9,800,000 shares authorized, 980,000 shares issued and outstanding Additional paid-in capital Retained earnings Total shareholders' equity The following transactions have also occurred at Shamrock. 1. Options were granted on July 1, 2016, to purchase 190,000 shares at $15 per share. Although no options were exercised during fiscal year 2017, 2. Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are the average price per common share during fiscal year 2017 was $20 per share exercisable after 5 years and were issued in fiscal year 2016