As of December 31, 2021, Corporation reported the following:

Cash dividends payable	$	20,000
Treasury stock		600,000
Paid-in capitalshare repurchase		20,000
Common stock and other paid-in capital accounts		4,000,000
Retained earnings		3,000,000

During 2022, half of the treasury stock was resold for $240,000; net income was $600,000; cash dividends declared were $500,000; and small stock dividends declared and distributed were $400,000 What would shareholders' equity be as of December 31, 2022?

Multiple Choice

• None of these amounts is correct.

• $6,760,000.

• $6,820,000.

• $7,760,000.