As of December 31, 2016, Warner Corporation reported the following: Dividends payable $25,000 Treasury stock 650,000 Paid-in capital - share repurchase 25,000 Other paid-in capital accounts 4,500,000 Retained earnings $3,500,000 During 2017, half of the treasury stock was resold for $250,000; net income was $650,000; cash dividends declared were $1,550,000; and stock dividends declared were $550,000. What would shareholders' equity be as of December 31, 2017?

A. $5,050,000.

B. $7,725,000.

C. $6,800,000.

D. $6,725,000.