E10-54. (Learning Objectives 2, 3, 4: Explaining the changes in shareholders’ equity) Moon Walk Corporation reported the following shareholders’ equity data (all dollars in millions except par value per share):

Moon Walk earned a net income of $2,950 during 20X6. For each account except Retained Earnings, one transaction explains the change from the December 31, 20X5, balance to the December 31, 20X6, balance. Two transactions affected Retained Earnings. Give a full explanation, including the dollar amount, for the change in each account.

1 A1 2 Preference share 3 Ordinary share, $1 par value 4 Additional paid-in capital 5 Retained earnings 6 Treasury share, ordinary 7 B December 31 C 20X6 20X5 $ 610 $ 740 908 889 1,512 1,482 20,635 19,100 (2,785) (2,600)