110. The Squash Company's shareholders' equity on January 1, 2012 was $3,125,500. During 2012, Squash Company reported the following:

Net income of $575,325.

Declared cash dividends totaling $125,000; the dividends had not been paid as of December 31, 2012.

Issued 10,000 shares of $5 par value common stock at $9 per share.

Purchased 5,000 shares of its common stock for $9.75 per share; the shares are being held as treasury shares.

Sold 1,500 shares of treasury stock for $9.25 per share.

Issued 2,000 shares of $5 par value common stock resulting from the declaration of a stock dividend during 2012; the market value of the common stock on the date of declaration was $10.25 per share.

What was shareholders' equity as of December 31, 2012?