Lanao Company showed the following increase (decrease) in ledger account balances during the current year:

Cash 800,000

Accounts receivable (400,000)

Inventory 300,000

Equipment 950,000

Notes payable - bank 500,000

Accounts payable (600,000)

Share Capital 700,000

Share premium 300,000

There was no transaction affecting retained earnings other than a P1,500,000 cash dividend and a P250,000 prior period error from understatement of ending inventory.

What was the net income for the current year?

a. 2,000,000

b. 2,500,000

c. 3,250,000

d. 3,000,000