show solution because im getting 1,360,000

correct answer is already given

The following changes in Galvez Company's assets and liabilities during 2016 are as follows: Account Increase (Decrease) Cash 750,000 Accounts receivable (120,000) Allowance for bad debts (30,000) Inventory 60,000 Land 1,000,000 Building 600,000 Accumulated Depreciation - Building 80,000 Accounts payable (170,000) Salaries payable 110,000 Income tax payable 60,000 Bonds payable 500,000 Discount on bonds payable (20,000) Further analysis revealed the following in relation to Galvez Company's equity accounts: Galvez Company issued 10,000 additional P10 par value ordinary shares for P12.50 each, as well as, 6,000 additional P100 par value ordinary shares for a piece of and whose fair value was P800,000. Cash dividends were declared on November 12, 2016 for holders on record as of December 1, 2016 and was distributed on December 28, 2016, P500,000. Galvez Company board of directors appropriated P150,000 for the construction of a storage facility which will start on January 12, 2017. The net income for the 2016 is A. 1,495,000 B. 1,445,000 C. 1,435,000 D. 1,295,000