As of December 31, 2016, Warner Corporation reported the following:

Dividends payable	$21,000
Treasury stock	610,000
Paid-in capital share repurchase	21,000
Other paid-in capital accounts	4,100,000
Retained earnings	$3,100,000

During 2017, half of the treasury stock was resold for $250,000; net income was $610,000; cash dividends declared were $1,490,000; and stock dividends declared were $510,000.

What was shareholders' equity as of December 31, 2016?

$7,221,000.

$6,611,000.

$6,590,000.

$6,632,000.