Murphy Company reported the following shareholders' equity on January 1, 2020: Preference share capital, 100,000shares, P10 par - P1,000,000 Ordinary share capital, 500,000shares, P10 par - P5,000,000 Share premium - Preference - P50,000 Share premium - Ordinary - P 200,000 Retained earnings - P100,000 During the current year, the following transactions were completed: Retirement of 5,000 preference shares at P11 per share. Purchase of 5,000 ordinary shares of treasury at P12 per share. Share split, ordinary share, 2-for-1. Reissue of 2,000 shares of treasury at P8 per share. Net income for the year, P300,000. What is the total shareholders equity on December 31, 2020?

P6,556,000

P6,251,000

P6,350,000

P6,551,000