A company's retained earnings on December 31, 2011 was $2,190,000 and its shareholders equity was $8,760,000. During 2012 the company reported the following: net income of $225,000; a sale of treasury stock costing $75,000 for $79,750; a treasury stock purchase costing $125,700; a cash dividend declaration of $73,200; a 10,000 share "small" common stock ($10 par value) dividend was declared and distributed when the market value was $12.75 per share. What is the owner's equity balance on December 31, 2012?