The shareholders equity section of Memphis Company as of December 31,2018 before closing its books and recording the 2018 dividends is as follows:

Ordinary share, 100,000 shares issued and outstanding P 3,000,000

Ordinary share premium 4,000,000

Retained earnings 8,000,000

Memphis board of directors declared a 20% share capital dividend on December 31, 2018 when the market value of each share was P 70. The corporations 2018 operations resulted to a loss P 1,200,000. What amount should Memphis report as retained earnings as of December 31, 2018? ____________________