(Learning Objective 2, 3, 4: Measuring the effects of stock issuance, treasury stock, and dividend transactions on stockholders’ equity) Wholegrain Health Foods, Inc., is authorized to issue 5,000,000 shares of $1 par common stock. In its initial public offering during 20X4, Wholegrain issued 500,000 shares of its $1 par common stock for $7.00 per share. Over the next year, Wholegrain’s stock price increased and the company issued 400,000 more shares at an average price of $8.50. During 20X6, the price of Wholegrain’s common stock dropped to $7, and the company purchased 60,000 shares of its common stock for the treasury. After the market price of the common stock rose in 20X7, Wholegrain sold 40,000 shares of the treasury stock for $8 per share. During the 5 years 20X4 through 20X8, Wholegrain earned net income of $620,000 and declared and paid cash dividends of $140,000. Stock dividends of $280,000 were distributed to the stockholders in 20X7, with $35,000 credited to common stock and $245,000 credited to additional paid-in capital. At December 31, 20X8, the company has total assets of $14,200,000 and total liabilities of $6,920,000.

Required

Show the computation of Wholegrain’s total stockholders’ equity at December 31, 20X8. Present a detailed computation of each element of stockholders’ equity.