Question 5 (20 marks) Multigrain Health Foods Inc. is authorized to issue 5,000,000 common shares. In its initial public offering during 2010, it issued 500,000 common shares for $7.50 per share. Over the next year Multigrain' share price increased, and the company issued 400,000 additional shares at an average price of $9.00. During the next seven years, from 2010 to 2016, It earned a net income of $980,000 and declared and paid cash dividends of $140,000. A 5% stock dividend was distributed to the shareholders in 2016 on the shares outstanding. The market price was $8.00 per share when the stock dividend was distributed. At December 31, 2016, the company has total assets of $14,500,000 and total liabilities of $6,820,000. Required: Show the computation of the total shareholder's equity at December 31, 2016. Present a detailed computation of each element of shareholder's equity. (you are required to provide the breakdown of C/S and S/E)