On January 2, 2016, Lovely, Inc. acquired a 15% interest in CPS Corp. by paying P8,000,000 for 100,000 ordinary shares. On this date, the net assets of CPS Corp totaled P40,000,000. The fair values of CPS corp.'s identifiable assets and liabilities were equal to their book values. Lovely did not have the ability to exercise significant influence over the operating and financial policies of CPS. Lovely received dividends of P1.40 per share from CPS on October 1, 2016. CPS reported net income of P5,000,000 for the year ended December 31, 2016. Lovely classified the investment as at fair value through other comprehensive income. Market price for the 100,000 shares was P9,000,000 on December 31, 2016.

Lovely paid P30,000,000 on January 1, 2017 for 300,000 additional CPS ordinary shares, which represents a 25% interest in CPS. The fair value of CPS Corp.'s identifiable assets, net of liabilities, was equal to their book values of P92,000,000. As a result of this additional acquisition, Lovely has the ability to exercise significant influence over the operating and financial policies of CPS. Lovely received a dividend of P2.70 per share on October 5, 2017. CPS reported net income of P6,000,000 for the year ended December 31, 2017. The investment's fair value on December 31, 2017, is P45,000,000.

What is the total amount of investment-related income that should be reported in the 2016 income statement?

Select one:

a. P1,610,000

b. P750,000

c. P140,000

d. P1,140,000