The shareholders equity accounts for Erle Enterprises Inc. at the beginning of the year were as follows: During the year the following selected transactions/events took place: January 1: Inventory was debited $20,000 for a previous period error February 1: A 2-for-1 preferred stock split; market price was $30 April 15: Declared a 10% stock dividend to common shareholders; fair value was $1.20 October 1: Repurchased 10,000 common shares for $15,000 December 31: Profit before tax was $200,000 December 31: Other comprehensive income net of tax was $20,000 Assuming no other transactions took place, what was the total shareholders equity after the preferred stock split?

Select answer from the options below

$1,600,000

$1,625,000

$1,900,000

$1,500,000