Shareholders' equity calculation requires complete initial balance

Steps:

• Initial share capital: 100,000 shares × $1 =$100,000.
• Bonus issue adds 50,000 shares ($50,000 to share capital, debited from reserves).
• Rights issue adds 50,000 shares ($50,000 to share capital,$1,200,000 to share premium).
• Profit $985,000 added to retained earnings; dividend$125,000 and transfer $500,000 subtracted from retained earnings; bonus$50,000 also subtracted from retained earnings.
• Total equity = share capital ($200,000) + share premium ($1,200,000) + general reserve ($500,000) + retained earnings ($310,000) = $2,210,000.

Not enough information: Initial retained earnings or other reserves not provided; insufficient for bonus issue without assuming post-profit capitalization, and resulting total does not match any option.

Final answer: Not enough information.