Denmark Inc. purchased 40% of Aarhus Inc.s outstanding ordinary shares on January 2, 2021, for P270,000,000. The book value of Aarhuss net assets at the purchase date totalled P450,000,000. Book values and fair values were the same for all financial statement items except for inventory and buildings, for which fair values exceeded book values by P12,500,000 and P112,500,000, respectively. All inventories on hand at the purchase date was sold during 2021. The buildings have average remaining useful lives of 15 years. Aarhus Inc. reported net income of P110,000,000 for the year ended December 31, 2021, and paid cash dividends of P50,000,000. The fair value of Denmarks investment in associate was P300,000,000 at December 31, 2021.

1. Of the amount paid for the acquisition of Aarhus Inc.s ordinary shares, how much is attributable to goodwill? 2. How much is the investment balance at December 31, 2021? 3. How much investment income will Denmark Inc. report on its 2021 profit or loss statement?