Farley Corporation bought 40% of the outstanding shares of Barney Company on January 2,2020. At the date of purchase, the book value of Barney's assets was P77.5 million. The Book value and Fair value for all the statement of financial position items were tge same except for inventory and plant facilities. The FV exceed BV by P500,000 for the inventory and by P2 million for plant facilities. The estimated useful life of plant facilities is 8 years. All inventory acquired was sold during 2020.

Barney reported net income of 14 million for the year ended Dec. 31,2020 and paid a cash dividend of 3 million. Farley's statement of financial position as of December 31,2020 shows an amount of P44.1 million as its investment in Barney Company.

QUESTION:

1. What amount should Farley report as its income from investment in Barney Company for the year ended December 31,2020?

2. On the amount paid by Farley for the 40% interest in Barney Company, how much is attribute to goodwill?

3. What is the acquisition cost of Farleys investment in Barney Company?