23. Information from the December 31, 2019 balance sheet of Royale Corporation is shown in the table below. Dividends payable $ 400,000 Treasury stock 800,000 Paid-in capital, share repurchases 35,000 All other paid-in capital accounts 4,000,000 Retained earnings 3,000,000 During 2020 the following activities occurred: Half of the treasury stock was sold for $300,000. Royale's management declared $700,000 in cash dividends. The dividends will not be paid out until the first quarter of 2021. Royale did not pay out any cash dividends during 2020. Net income was $1,750,000. A stock split effected in the form of a stock dividend was declared and distributed when Royale shares were trading at $15 per share. What was shareholders' equity at December 31, 2020? a. $6,785,000 b. $7,885,000 c. $7,585,000 d. $6,385,000