1. At the beginning of current the year, an entity purchased 40% of the outstanding ordinary shares of another entity for P3,500,000 when the net assets of the investee amounted to P7,000,000. At acquisition date, the carrying amounts of the identifiable assets and liabilities of the investee were equal to their fair value, except for equipment whose fair value was P1,500,000 greater than carrying amount and inventory whose fair value was P500,000 greater than cost. The equipment had a remaining life of 4 years and the inventory was all sold during the current year. The investee reported net income of P4,000,000 and paid P1,000,000 cash dividend during the current year. 1. What is the investment income for current year? 2. What is the carrying amount of the investment in associate at year-end? 2. On July 1, 2021 an entity purchased 25% of an investee's outstanding ordinary shares and no goodwill resulted from the purchase. The entity appropriately carried this investment at equity and the balance in the investment account was P1,900,000 on December 31, 2021. The investee reported net income of P1,200,000 earned evenly for the year ended December 31, 2021 and paid cash dividend totaling P800,000 on December 31, 2021. 1. What is the investment income for 2021? 2. How much did the investor pay for the 25% interest in the investee?