On January 1, 2020, Parent Company purchased 80% of the outstanding shares of Subsidiary Company by paying P 780,000, the Subsidiary Company's common stock and retained earnings on this date amounted to P 300,000 and P 460,000,000 respectively. Also, Parent Company's common stock and retained earnings on this date amounted to P1,000,000 and P 700,000 respectively. Subsidiary Company's assets and liabilities approximated their fair value except:

Book Value Fair Value Useful Life Inventory P 75,000 P 100,000 Building 200,000 250,000 5 years Equipment 180,000 150,000 6 years Land 500,000 595,000Parent Company Subsidiary Company 2020 2021 2020 2021 Net Income |P 280,000 P 288,000 P 135,000 112,500