P10-78A. (Learning Objectives 2, 3, 4: Measuring the effects of share issuance, treasury shares, and dividend transactions on shareholders' equity) Best Foods, Inc., is authorized to issue 5,500,000 shares of $6.00 par ordinary share. In its initial public offering during 20X0, Best issued 475,000 shares of its $6.00 par ordinary shares for $8.00 per share. Over the next year, Best's share price increased, and the company issued 380,000 more shares at an average price of $10.00. During 20X2, the price of Best's ordinary shares dropped to $7.25, and Best purchased 60,000 shares of its ordinary shares for the treasury. After the market price of the ordinary share rose in 20X3, Best sold 40,000 shares of the treasury shares for $10.00 per share. During the five years from 20X0 to 20X5, Best earned a net income of $1,000,000 and declared and paid cash dividends of $600,000. Share dividends of $641,250 were distributed to the shareholders in 20X1, with $359,100 credited to ordinary shares and $282,150 credited to additional paid-in capital. At December 31,20X5, total assets of the company are $14,800,000, and liabilities add up to $6,835,000. Requirement 1. Show the computation of Best's total shareholders' equity at December 31,205. Present a detailed computation of each element of shareholders' equity. Use the end-of chapter summary problem to format your answer. P10-78A. (Learning Objectives 2, 3, 4: Measuring the effects of share issuance, treasury shares, and dividend transactions on shareholders' equity) Best Foods, Inc., is authorized to issue 5,500,000 shares of $6.00 par ordinary share. In its initial public offering during 20X0, Best issued 475,000 shares of its $6.00 par ordinary shares for $8.00 per share. Over the next year, Best's share price increased, and the company issued 380,000 more shares at an average price of $10.00. During 20X2, the price of Best's ordinary shares dropped to $7.25, and Best purchased 60,000 shares of its ordinary shares for the treasury. After the market price of the ordinary share rose in 20X3, Best sold 40,000 shares of the treasury shares for $10.00 per share. During the five years from 20X0 to 20X5, Best earned a net income of $1,000,000 and declared and paid cash dividends of $600,000. Share dividends of $641,250 were distributed to the shareholders in 20X1, with $359,100 credited to ordinary shares and $282,150 credited to additional paid-in capital. At December 31,20X5, total assets of the company are $14,800,000, and liabilities add up to $6,835,000. Requirement 1. Show the computation of Best's total shareholders' equity at December 31,205. Present a detailed computation of each element of shareholders' equity. Use the end-of chapter summary problem to format your