7. Israel Company is authorized to issue 200,000 of P10 par value ordinary shares, and 60,000 of 6% cumulative and nonparticipating preference shares, par value P100 per share. The company engaged in the following share capital transactions through December 31, 2013: a) 50,000 ordinary shares were issued for P650,000 and 20,000 preference shares for machinery valued at P2,600,000. b) Subscriptions for 9,000 ordinary shares have been taken, and 40% of the subscription price of P10 per share has been collected. The shares will be issued upon collection of the subscription price in full. c) 2,000 treasury ordinary shares have been purchased for P12 and accounted for under the cost method. The post-closing retained earnings balance at December 31, 2013 is P420,000. What is Israel's total shareholders' equity at December 31, 2013? a. P3,714,800 C. P3,638,000 b. P3,710,800 d. P3,110,800