On January 2, 2016, J Company acquired 80% interest in K Company for P4,125,000 cash. On this date, the outstanding ordinary share capital and accumulated profits of J Company and K Company are as follows:

Ordinary share capital: J-2,250,000; K-1,312,000

Share Premium: J- 1,750,000

Accumulated Profits: J-5,520,000; K- 3,187,500

There was no issuance of ordinary shares during the year. Non-controlling interest is initially measured at fair value. Fair value of the following assets of K exceeded their book values as follows: Inventories, P210,000; Property and equipment (useful life, 10 years), P127,500. All other assets and liabilities are fairly valued. Goodwill if any is not impaired. On December 31, 2016, the two companies reported the following operating results:

Net Income of J is 1,825,000; Net Income of K is 975,000

Dividends paid: J- 525,000; K262,500

What is the consolidated shareholders' equity to be reported in the consolidated statement of financial position on December 31, 2016?