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The stockholders' equity section of Sandhill Inc. at the beginning of the current year appears below.

Common stock, $$10$ par value, authorized $964,000$ shares, $315,000$ shares issued and outstanding $$3,150,000$

Paid$-$in capital in excess of par$-$common stock

$599,000$

$552,000$

Retained earnings

During the current year, the following transactions occurred.

The company issued to the stockholders $95,000$ rights. Ten rights are needed to buy one share of stock at $$32.$ The rights were void after $30$ days. The market price of the stock at this time was $$34$ per share.

The company sold to the public a $$183,000,10\%$ bond issue at $104.$ The company also issued with each $$100$ bond one detachable stock purchase warrant, which provided for the purchase of common stock at $$30$ per share. Shortly after issuance, similar bonds without warrants were selling at $96$ and the warrants at $$8.$

All but $4,750$ of the rights issued in $(1)$ were exercised in $30$ days.

At the end of the year, $80\%$ of the warrants in $(2)$ had been exercised, and the remaining were outstanding and in good standing.

During the current year, the company granted stock options for $10,000$ shares of common stock to company executives. The company, using a fair value option$-$pricing model, determines that each option is worth $$10.$ The option price is $$30.$ The options were to expire at year$-$end and were considered compensation for the current year.

All but $1,000$ shares related to the stock$-$option plan were exercised by year$-$end. The expiration resulted because one of the executives failed to fulfill an obligation related to the employment contract.

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