8. Hot Co. owns 50,000 shares out of the 300,000 total outstanding shares of Cold, Inc. The investment in Cold's shares has a carrying amount of P1,200,000 on Jan. 1, 20x1. Hot also owns bonds issued by Cold that are convertible into 30,000 ordinary shares. The bonds are currently convertible; however, Hot Co. does not intend to convert them. Cold does not have any other outstanding convertible bonds aside from those held by Hot. Cold reported profit of P3,300,000 and declared and paid cash dividends of P180,000 in 20x1. How much is the carrying amount of Hot Co.'s investment in Cold shares as of Dec. 31, 20x1? b. 1,872,363 c. 1,956,364 d. 1,980,000 a. 1,720,000