On January 2, 2020, Pardon Corporation acquired 60% of the outstanding shares of Sin Company for P500,000. In addition, Pardon paid acquisition-related costs of P40,000. The book and fair value of these shares was P480,000. Any excess of the investment cost over the book value of interest acquired has a maximum life of 20 years.

1. For 2020 Sin reported CI of P200,000 and paid dividends of P80,000. Under the Cost, what is the balance of the Investment in Sin Company stock account on Pardon's books at December 31, 2020?
2. Under the Cost and Equity Methods the balance of the Investment in Sin Company stock account on Pardon's books at December 31, 2020?

Select one:

P611,000

P612,000

P571,000

P500,000