Patterson Company acquired 90% of Starr Corporation on January 1, 20x7 for P2,250,000. Starr had netassets at that time with a fair value of P2,500,000. At the time of the acquisition, Patterson computed theannual excess fair-value amortization to be P20,000, based on the difference between Starr's net bookvalue and net fair value. Assume the fair value exceeds the book value, and P20,000 pertains to the whole company. Separate from any earnings from Starr, Patterson reported net income in 20x7 and 20x8 of P550,000 and P575,000, respectively. Starr reported the following net income and dividend payments:

	20x7	20x8
Net income	150,000	180,000
Dividends	30,000	30,000

How much is the consolidated net income in 20x8?

Select one:

a.

P735,000

b.

P692,000

c.

P690,000

d.

P710,000