In January 2, 2006, Hope Inc. acquired 20% of the outstanding ordinary shares of Peace Company for P700,000. This investment gave Hope the ability to exercise significant influence over Peace. The book value of the acquired shares was P600, 000. the excess of cost overbook value was attributed to a depreciable asset which was undervalued on Pace’s balance sheet and which had ten years useful life remaining. For the year ended December 31, 2006,Peace reported net income of P180, 000 and paid cash dividends of P60, 000 on its ordinary. How much is the carrying value of Hope’s investment in Peace at December 31, 2006?

a) P678, 000

b) P690, 000

c) P700, 000

d) P714, 000