1. On 1 January 2018, Fellow purchased 25% of the shares in Guru for P800,000. At this date, Guru's net assets stood at P1,600,000. At 31 December 2018, Guru has net assets of P1,800,000. Fellow sold goods worth P190,000 to Guru at a margin of 25%. Half of the goods remained in inventory at the year end.

Required to calculate the value of the investment in associate as at 31 December 2018 (10)