Miami Heat Company reported the following shareholders equity on January 1, 2018.

Ordinary Share Capital P 1,500,000

Ordinary Share Premium 3,000,000

Retained earnings 2,000,000

The entity had 400,000 authorized shares of P 5 par value, of which 300,000 shares were issued and outstanding. On March 1, 2018, the entity acquired 50,000 shares for P 10 per share to be held as treasury. These shares were originally issued at P 8 per share. On December 31, 2018, the entity declared and distributed property dividend with a carrying amount of P 750,000 and a P 1,000,000 fair value. The net income for 2018 was P 2,500,000. What amount should be reported as Unappropriated retained earnings on December 31, 2018? ____________________