Western Agriculture Industries Ltd. is authorized by the province of Saskatchewan to issue 500,000 common shares.

In its initial public offering during 2010, Western Agricultural issued 200,000 of its common shares for $12 per share. Over the next year, Western Agricultural'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 2010 to 2014, Western Agricultural earned net income of $395,000 and declared and paid cash dividends of $119,000. Stock dividends of $135,000 were distributed to the shareholders in 2013, when the share market price was $10. At December 31, 2014, total assets of the company are $7,030,000, and liabilities add up to $2,904,000.

Requirement

Show the computation of Western Agricultural Industries Ltd.'s total shareholders' equity at December 31, 2014. Present a detailed computation of each element of shareholders' equity.