The balance sheet of Palma Enterprises and Selda Company at December 31, 2016 are summarized below:

AccountsPalmaSelda

AssetsP5,000,000P2,000,000

Liabilities1,500,000500,000

Capital stock, P40 par2,500,000

Capital stock, P25 par1,000,000

Retained earnings1,000,000500,000

At the date of acquisition, Selda's net assets are understated while its liabilities are fairly valued.

On January 1, 2017, Palma purchased 80% of Selda Company's outstanding shares for P2,000,000, when the fair value of Selda's net assets was P2,200,000. Palma issued 10,000 previously unissued shares in consideration of the acquisition. Palma is to assign an amount to the non-controlling interest at the date of acquisition based on the total fair value of Selda's outstanding shares.

Assume the amount assigned to the non-controlling interest at the date of acquisition is based on the total fair value of the identifiable net assets at that date, calculate the amount of goodwill recognized at January 1, 2017