The stockholders' equity section of Peter's Corporation's balance sheet at December 31, 20x2, was as follows:

Ordinary shares (10 par value, authorized 1,000,000 shares, issued and outstanding 900,000 shares) - 9,000,000

Share premium - 2,700,000

Retained earnings - 1,300,000

On January 2, 20x3, Peter purchased and retired 100,000 shares of its stock for 1,800,000. Immediately after retirement of these 100,000 shares, the balances in the share premium and retained earnings account should be? show the solution and explain.