Healthy Living Foods, Inc., is authorized to issue 4,250,000 shares of $1.00 par common stock.
In its initial public offering during 2012, Healthy Living issued 390,000 shares of its $1.00 par common stock for $5.50 per share. Over the next year, Healthy Living’s stock price increased, and the company issued 460,000 more shares at an average price of $8.50.
During 2014, the price of Healthy Living’s common stock dropped to $6.00, and Healthy Living purchased 58,000 shares of its common stock for the treasury. After the market price of the common stock rose in 2015, Healthy Living sold 30,000 shares of the treasury stock for $10.00 per share.
During the five years 2012 to 2017, Healthy Living earned net income of $1,200,000 and declared and paid cash dividends of $350,000. Stock dividends of $712,800 were distributed to the stockholders in 2013, with $79,200 credited to common stock and $633,600 credited to additional paid-in capital. At December 31, 2017, total assets of the company are $14,400,000, and liabilities add up to $7,543,000.

Requirement
1. Show the computation of Healthy Living’s total stockholders’ equity at December 31, 2017. Present a detailed computation of each element of stockholders’ equity. Use the end-of-chapter summary problem on pages 612–613 to format your answer.