On January 1, 2016, Jenny Company purchased 80 percent of the outstanding shares of Mark Company at a price that included P40,000 excess attributable entirely to an undervalued equipment with a remaining life of 5 years on the date of acquisition. For 2016, Jenny Company reported consolidated net income of P461,448. Non-controlling interest in net income was P44,312. The non-controlling interest reported in the consolidated statement of financial position as of December 31, 2016 is P229,912.

On December 31, 2016, Jenny Company had inventories that included P52,200 worth of merchandise purchased from Mark Company at 125 percent of its cost. On the same date, Mark Company had inventories that included P34,800 worth of merchandise purchased from Jenny Company at 120 percent of its cost. Neither company paid any dividends in 2016.

Required:

1. Compute net income of Jenny Company from their own operations.
2. Compute the price paid by Jenny Company for its investment in Mark Company.