On January 1, 2020, Meruem Company began operations by issuing at P15 per share one-half of the 950,000 ordinary shares of P10 par value that had been authorized for sale. In addition, the entity has 500,000 authorized preference share of P5 par value. During 2020, the entity had P1,025,00 of net income and declared P230,000 of dividends. During 2021 the entity had the following transactions: Issued 100,000 ordinary shares for P17 for share. Issued 150,000 preference shares for P8 per share. Authorized the purchase of the custom-made machine to be delivered in January 2022. The entity restricted P300,000 of retained earnings for the purchase of the machine. Issued additional 50,000 preference shares for P9 per share. Reported P1,215,000 of net income and declared on December 31, 2021, a cash dividend of P635,000 to shareholders of record on January 15, 2022, to be paid on February 1, 2022. . Required: 1. What is the total stockholders' equity on December 31, 2020? 2. What is the shareholders' equity on December 31, 2021?1