7. On January 1, 2002, Mets Inc. purchased 30 percent of the outstanding common stock of Pirates Corporation for P516,000 cash. Mets is accounting for this investment using the equity method. On the date of acquisition, the fair value of Pirates' net assets was P1,240,000. Mets has determined that the excess of the cost of the investment over its share of Pirates' net assets is attributable to goodwill, which will be amortized over the maximum allowable period. Pirates' net income for the year ended December 31, 2002, was P360,000. During 2002, Pirates declared and paid cash dividends of P40,000. There were no other transactions between the two companies. On December 31, 2002, the investment in Pirates should be recorded as a. 392,400 b. 608,400 c. 612,000 d. 624,000 dapted)