Beaux Company has the following information in its equity accounts: (V9-28)

Number of shares Amount

Preference share capital, P500 par value 2,200 P 1,100,000

Treasury preference shares, at cost 100 110,000

Ordinary share capital without par value

(at issue price) 3,000 600,000

Retained earnings 2,500,000

Due to the substantial amount of retained earnings, the entity's Board of Directors resolved to pay a 100% stock dividend on all shares outstanding, capitalizing amounts of retained earnings equal to the par value

and the issue price of the preference and ordinary shares outstanding, respectively, and thereafter to pay a cash dividend of 10% on preference share and a cash dividend of P10 per ordinary share.

______What is the total shareholders' equity of Beaux Company after effecting the above

transactions?a.P4,090,000b.P3,810,000c.P3,820,000d.P3,955,000