Bernie Bird Co. has 260,000 outstanding (P10 par) ordinary shares and retained earnings balance of P1,780,000 on January 1, 20x1. During the year, Bernie acquired 2,000 treasury shares at P18 per...

Extracted text: Bernie Bird Co. has 260,000 outstanding (P10 par) ordinary shares and retained earnings balance of P1,780,000 on January 1, 20x1. During the year, Bernie acquired 2,000 treasury shares at P18 per share and reissued them at P22 before year-end. Bernie earned profit of P2,260,000 in 20x1. On December 31, 20x1, Bernie declared P8 cash dividends per share and "1-for-20" stock dividends, both to be distributed on February 1, 20x2. The fair value per share on December 31, 20x1 was P22. What amount of retained earnings should Berni report on December 31, 20x1? O 1,674,000 O 1,642,000 O 1,582,000 O 1,682,000