Problem 1: The shareholders' equity of JAV Corporation as of January 1, 2020 are as follows: Common shares, P10 par, 300,000 shares P3,000,000 Share premium 300,000 Retained earnings 1,250,000 During the year, the company reacquired and retired 10,000 shares for P12 share. These shares were originally issued at P11 per share. Net income of the corporation amounted to P500,000, and dividends of P100,000 were declared. Required: 1. How much is the retained earnings as of December 31, 2020? 2. How much is the total shareholders' equity as of December 31, 2020? per