An entity has two operating divisions, one manufacturers machinery and the other breeds and sells horses. Both divisions are considered separate components. The horse division has been unprofitable and on November 15, 2018, the entity adopted a formal plan to sell the division. The sale was completed on April 30, 2019. At December 31, 2018, the component was considered held for sale. On December 31, 2018, the carrying amount of the assets of the horse division was P2,500,000. On that date, the fair value of the assets less cost of disposal was 2,000,000. The before tax operating loss of the division for the year was P1,000,000. The entity's effective tax rate is 30%. The after tax income from continuing operations for 2018 was P4,000,000. What is the net income for 2018? A. 4,000,000 B. 3,300,000 C. 2,500,000 D. 2,950,000