During 2010, Sanchez, Inc $\quad \$ 220,000$ Of $10 \%, \$ 100$

During 2010, Sanchez, Inc.had the following convertible securities outstanding:
A. $\quad \$ 220,000$ of $10 \%, \$ 100$ par, convertible preferred stock. Each share is convertible into 5 shares of common stock.
B. $\$ 200,000$ of $9.5 \%$ conventible bonds. Each $\$ 1,000$ bond is convertible into 45 shares of conmon stock
C. $\$ 100,000$ of $8 \%$ convertible boncks. Each $\$ 1,000$ bond is convertible into 32 shares of common stock.
D. $\$ 150,000$ of $11 \%, \$ 100$ par, convertible preferred stock. Each share is convertible into 5 shares of common stock.
Sanchez, Inc.has an income tax rate of 40%.
Required: