Prince Inc. acquired 100,000 ordinary shares of Queen Corp. for P5 per share and 250,000 ordinary shares of King Inc. for P10 per share on January 2, 2017. Both Queen Corp. and King Inc. have 1,000,000 ordinary shares outstanding. The book values of the net assets of Queen Corp. and King Inc. on the acquisition date were P4.5M and POM, respectively. The fair values of the net assets of both Queen Corp. and King Inc. approximated their book values on the acquisition date, except for one of King's depreciable asset having a remaining life of 5 years, which was understated by P500,000. Both securities are being held as long-term investments. Your investigation revealed the following changes in Retained Earnings of Queen Corp. and King Inc. for 2017 and 2018 based on their respective audited financial statements: Queen Corp. King Inc. Retained earnings (Deficit), 1/1/17 P2,000,000 (P350,000) Cash Dividends, 2017 (250,000) Profit for 2017 400.000 650,000 Retained earnings, 12/31/17 P2,150,000 P300,000 Cash dividends, 2018 (300,000) (100,00) Profit for 2018 600,000 250.000 Retained earnings, 12/31/18 P2,450,000 P250,000 Market values of shares: 12/31/17 P7.00 per sh. P12.00 per sh. Market values of shares: 12/31/18 6.50 per sh. 15.00 per sh