At the beginning of 2020, Glasgow Company had retained earnings of P3,000,000. Throughout the year, the company had 20,000 shares of P100 par value ordinary shares that are issued and outstanding.

During the year 2020, Glasgow Company reported profit of P5,000,000, purchased treasury shares for P580,000 declared cash dividend of P1,500,000. Reissued all treasury shares at a gain of P180,000 and declared and issued 5,000 ordinary shares as bonus issue when the market value was P150 per share.

What is the retained earnings balance at December 31, 2020?