INVESTMENT IN ASSOCIATE

Justin Company acquired 20% of Selena Company's voting share capital for P2,000,000 plus P500,000 transaction cost on July 1, 2019. Justin's 20% interest in Selena gave Justin the ability to exercise significant influence. On December 15, 2019, Selena paid Justin Company cash dividends of P270,000. Selena's net income for the year ended December 31, 2019 was P5,250,000, earned evenly throughout the year. Selena reported earnings of P2,000,000 for 2020, of which P1,200,000 was for the nine months ended December 31, 2020. On April 1, 2020, Justin sold a quarter of the investment in Selena for P960,000 cash. Selena paid ordinary shareholders cash dividends of P1,000,000 on October 1, 2020. The fair value of the retained investment is P2,400,000 on April 1, 2020 and P2,774,000 on December 31, 2020. The retained investment is to be held as trading securities.

What is the total amount of income to be reported in 2020? Show your solution.