Ifugao Company accomplished a quasi-reorganization effective December 31, 2021. Immediately prior to the quasi-reorganization, the shareholders equity was as follows:

Share capital, par value of P10; authorized, issued and outstanding, 400,000 shares	P 4,000,000
Share premium	600,000
Retained earnings (deficit)	(900,000)
Total shareholders equity	P 3,700,000

Under the terms of the quasi-reorganization, the par value of the share capital was reduced from P10 to P5 and plant asset was written down by P1,200,000.

Immediately after the quasi-reorganization, what is the shareholders equity?

ans: 2,500,000 provide a solution