1. Pepsi Company holds an investment of 30% in the ordinary shares of RC Company, an associate that has an assets of P6,000,000 for the year ended December 31, 2018 which includes the current year net profit of P770,000. The associate has issued 100,000 9% cumulative preference shares with a nominal value of P10. The preference shares are classified by the associate as equity instruments. The associate has not declared dividends on the cumulative preference shares since 2017.

What is the carrying value of Pepsi's investment in associate as of 12/31/2018?

1. Based on question no 29, what amount of income from investment should Pepsi Company will have assuming it does not hold any interest in the preference shares of RC Company?