The shareholders' equity section of Sanchez Company on January 1, 2018 showed the following:

Ordinary share, P100 par, 200,000 shares authorized, 60,000 shares issued P6,000,000

Share premium 1,200,000

Retained earnings 2,500,000

During the year, Sanchez had the following transactions:

a. In February, Sanchez reacquired 4,000 shares for P100 per share.

b. In June, Sanchez sold 2,000 shares of its treasury share for P120 per share.

c. In September, each shareholder was issued for each share held one stock right to purchase two additional shares of ordinary for P130 per share. The rights expire on December 31, 2018.

d. In October, 10,000 stock rights were exercised when the market value of the ordinary share was P160 per share.

e. On December 15, 2018, Sanchez declared its first cash dividend to shareholders of P13 per share, payable on January 14, 2019, to shareholders of record on December 31, 2018.

f. On December 23, Sanchez formally retired 1,000 treasury shares.

g. Net income for the year 2018 was P1,100,000.

h. Appropriated retained earnings equal to the cost of the treasury share.

How much is the total shareholders' equity on December 31, 2018 statement of financial position?