The following shareholders' equity accounts are reported by Branch inc on January 1 Common shares (unlimited authorized, 150,000 issued) Preferred shares ($4 cumulative, convertible 100,000 authorized, 5,000 issued) Contributed surplus-reacquisition of common shares Retained earnings $2,400.000 375,000 30,000 1.275,000 2 June 14 The following selected transactions occurred during the year: Feb 11 Issued 50,000 common shares at $20 per share. Mar. Reacquired 20,000 common shares at $22 per share Split the common shares 2 for 1 when the common shares were trading at $30 per share. July Reacquired 500 preferred shares at $70 per share. Sept Reacquired 50,000 common shares for $17 per share. Oct Declared a 5% common stock dividend distributable on December 13 to shareholders of record on November 24. The fair value of the common shares on October 27 was $19 per share. Dec 13 Distributed the stock dividend declared on October 27. The fair value of the common shares on December 13 was $21 per share 25 16 27 Why is the Contributed Surplus account reported in shareholders' equity