Reference no: EM132761135

Question - New York Corporation has the following shareholders' equity on December 31, 2021:

Shareholders' equity

Share capital $10 convertible preferred shares, 10,000 shares authorized, 5,000 shares issued $570,000

Common shares, no par value, 200,000 shares authorized, 90,000 shares issued 1,800,000

Total share capital 2,370,000

Retained earnings 450,000

Total shareholders' equity $2,820,000

If one preferred share is convertible into 10 common shares, how many common shares are issued when 500 preferred shares are converted?