Phoenix Suns Company reported the following shareholders equity on January 1, 2019. Ordinary Share Capital - P1,500,000 Ordinary Share Premium - P3,000,000 Retained earnings - P2,000,000 The entity had 400,000authorized shares of P 5 par value, of which 300,000 shares were issued and outstanding. On March 1, 2019, the entity acquired 50,000 shares for P 10 per share to be held as treasury. These shares were originally issued at P 8per share. On December 31, 2019, the entity declared and distributed property dividend with a carrying amount of P 750,000, which is also its fair value. The net income for 2019 was P2,500,000. What amount should be reported as Unappropriated retained earnings on December 31, 2013?

a. P3,500,000

b. P3,000,000

c. P3,350,000

d. P3,250,000