On January 1, 2018, Horton Company acquired 20% of the outstanding ordinary shares of Adam Company for P4,000,000. This investment gave Horton the ability to exercise significant influence over Adam. The book value of the acquired shares was P3,000,000. The excess of cost over book value was attributed to a depreciable asset which was undervalued on Adams statement of financial position and which had a remaining useful life of ten years. For the year ended December 31, 2018, Adams share capital outstanding is as follows:

10% cumulative preference share capital P 2,500,000

Ordinary share capital 10,000,000

Adam reported net income of P1,500,000 for the year ended December 31, 2018.

What amount should Horton record as investment income for the year ended December 31, 2018?