At the beginning of the current year, ACE Company acquired 20% of the outstanding ordinary shares of CED Company for P8,000,000.

The investment gave ACE the ability to exercise significant influence over CED. The carrying amount of the acquired shares was P6,000,000.

The excess of cost over carrying amount was attributed to a depreciable asset which was undervalued on CED'S statement of financial position and which had a remaining useful life of ten years.

The investee reported net income of P1,800,000 and paid cash dividends of P400,000.

- What amount should be reported as investment income for the current year?

- What is the carrying amount of the investment in associate at year-end?