1. Peacemeal is an associate undertaking of Thabo. Thabo owns 30% of the shares in Peacemeal and has done so for many years.

During the year ended 31 December 2014, Peacemeal made a net profit of P15 million. Peacemeal sold goods to Thabo during the year with a value of P20 million, and half are still in Thabos inventories at year end. All the goods were sold at a margin of 30%.

Thabo has recognised previous impairments in relation to its investment in Peacemeal of P2,250,000. In the current year, Thabo wishes to recognize an additional impairment charge of P350,000.

Required: Show the share of profit of associate to be shown in Thabos consolidated statement of profit or loss? (10)