We present Nickle Incorporated's current-year partial income statement. Nickle is subject to a 40 % income tax rate. Partial Income Statement Current Year Income from Continuing Operations $1,250,190 Discontinued operations-Income, net of tax 536,860 Net Income $1,787,050 A partial balance sheet for the current year follows. Partial Balance Sheet Current Year Liabilities: 5% Convertible Debt - Issued at $1,000 par(1) $ 8,107,000 Stockholders' Equity: Common Stock, no par (1,036,000 shares issued and outstanding)(2) $ 5,220,000 $ 3 Convertible Preferred Stock, $100 par value (42,400 shares issued and 4,240,000 outstanding) (3) Additional Paid-in Capital- Stock Options (employee options to acquire (1,862,500) 168, 336 shares) (4) Notes to the Balance Sheet: (1) Each bond is convertible into 86 shares of common stock. The bonds are outstanding all year. (2) The number of shares issued and outstanding did not change throughout the year. (3) Each preferred share is convertible into nine shares of common stock. The firm declared preferred dividends. The preferred stock was outstanding all year. (4) The options are exercisable at $25 per share, and the average market price of the company's stock for the year is $42. The options were outstanding all year. a. Based on the information provided, compute