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7. At the beginning of the current year, Paintball Company had retained earnings of P4,000,000. During the year, the entity reported net income of P2,000,000, sold treasury shares at a gain of P720,000, declared a cash dividend of P1,200,000, and declared and issued a small share dividend of 60,000 shares with P10 par value when the fair value of the share wash P20. What is the amount of retained earnings available for dividends at the end of the year?