CHERIE CORP. provided the following account balances on December 31, 2018:

Accounts payable $125,000

Accrued taxes $50,000

Cash surrender value$30,000

Ordinary share capital$1,000,000

Dividends-preference$150,000

Mortgage payable

(200,000 due in six months) $1,200,000

Notes payable - 20%

(due on January 2, 2019)$1,500,000

Shares premium$250,000

Preference share capital $450,000

Income summary-credit balance $500,000

Accumulated profits - December 31, 2018 $550,000

Unearned rent income $25,000

Dividends-ordinary$100,000

How much should CHERIE CORP. report as shareholders' equity on December 31, 2018?

a)$1,450,000

b)$1,650,000

c)$2,500,000

d)$2,250,000