On January 1, 2020, Forensic Company acquired a 10% interest in an investee for P3,000,000. The investment was accounted for using the cast method. On January 1, 2021, the entity acquired a further 15% interest in the investee for P6,750,000. On such date, the carrying amount of the net assets of the investee was P36,000,000 and the fair value of the 10% interest was P4,500,000 The fair value of the net assets of the investee is equal to carrying amount except for an equipment whose fair value exceeds carrying amount by P4,000,000. The equipment has a remaining life of 5 years. The investee reported net income of P8,000,000 for 2021 and paid dividend of P5,000,000 on December 31, 2021. 4. What is the gain on remeasurement to equity to be recognized for 2021? a. 1,500,000 c. 2,250,000 b. 4,500,000 d. 0 5. What is the goodwill arising from the acquisition on January 1, 2021? a. 2,250,000 c. 1,350,000 b. 1,250,000 d. 350,000 6. What is the carrying amount of the investment in associate on December 31, 2021? a. 11,250,000 c. 12,000,000 b. 11,800,000 d. 14,300,000 ital for P2.000.000 on January 1