n January 1, 2019, VC Company established significant influence over M&M Inc. by acquiring 50,000 ordinary shares, a 30% interest, for P480,000. The book value of M&M was P1,800,00 on January 1, 2019. Since this purchase, M&M earned income and paid dividends as follows: Year Net income Dividends 2019 240,000 80,000 2020 280,000 120,000 The market value per share on M&M ordinary shares on December 31, 2019 and 2020 was P9 and P10, respectively. The VC incorrectly accounted for this investment as if significant influence had not been established. In 2019, how much should have been reported as Net investment in M&M Inc

Select one:

a. P540,000

b. P618,000

c. P480,000

d. P450,000