11. On December 31, 2015, Zeus Company showed shareholders' equity of P4,000,000. During the current year, the shareholders' equity was affected by: * An adjustment to retained earnings for overstatement of inventory on December 31, 2014 in the amount of P200,000. Declared dividend of P400,000 of which P300,000 was paid in 2015. The share capital was split five for one. Net income for the year amounted to P700,000. The share capital of P3,000,000 remainded unchanged during the year. What is the retained earnings balance on January 1, 2015? a. 1,000,000 b. 900,000 c. 800,000 d. 1,100,000