21. please answer

Question 21 1 pts On December 31, 2020, the balance sheet of Legend Corporation shows a total equity of P1,260,000. During 2020, the shareholders' equity was affected by: Adjustment to retained earnings for the overstatement of 2019 net income P17,500 Cash dividend declared and paid in 2020 10% Net income of 2020 P65,000 The share capital of P1,000,000 remained unchanged during the year. What is the balance of retained earnings on January 1, 2020? Net income of 2020 P65,000 The share capital of P1,000,000 remained unchanged during the year. What is the balance of retained earnings on January 1, 2020? P295,000 P260,000 P312,500 OP360,000