Western Agriculture Industries Ltd. is authorized by the province of Saskatchewan to issue 500,000 common shares.
In its initial public offering during 2013, Western Agriculture issued 200,000 of its common shares for $12 per share. Over the next year, Western Agriculture's common share price increased, and the company issued 100,000 more shares at an average price of $14.50.
During the five years from 2013 to 2017, Western Agriculture earned net income of $395,000 and declared and paid cash dividends of $119,000. Stock dividends of $135,000 were declared and distributed to the shareholders in 2016 when the share market price was $10. At December 31, 2017, total assets of the company are $7,030,000, and liabilities add up to $2,904,000.
Requirement
Show the computation of Western Agriculture Industries Ltd.'s total shareholders' equity at December 31, 2017. Present a detailed computation of each element of shareholders' equity?