Davies Corporation’s shareholders’ equity at the beginning of the year shows the following balances:
10% Preference Share, ₱50 par: ₱2,000,000
Ordinary Share, ₱30 par: ₱3,000,000
Share Premium-Preference: ₱4,000,000
Share Premium-Ordinary: ₱5,000,000
Treasury Shares (10,000 ordinary shares): ₱450,000
Accumulated Profits-Free: ₱6,000,000
Accumulated Profits-Appropriated: ₱1,000,000
The following selected transactions happened during the year:
Feb 29: The treasury shares were reissued at ₱50 per share.
Jul 31: A 10% share dividend was declared. On this date, each preference share and ordinary share had a fair value of ₱70 and ₱50, respectively.
Aug 31: Davies declared total cash dividends worth ₱1,000,000. Preference shares are participating.
Dec 31: Net income for the year was ₱2,500,000.
How much is total shareholders’ equity at year-end?