Tomato Co. Purchased 40% of MU Corp. on April 1, 2017, for P500,000 when MU's book Value was P1,260,000. On the date of

acquisition, the market value of MU's net Assets equaled their book values except for the following;

MU's equipment has fair value of P50,000 less than its book value. The equipment has a remaining useful life of 10 years.

" MU's fair value has a fair value of P40,000more than its book value. The building has a remaining useful life of 20 years. "

MU's results of operations in 2017 and 2018 are as follows;

" 2017 NET INCOME P150,000"

2018 NET LOSS OF P30,000

MU paid cash dividends of P20,000 and P10,000 in 2017 and 2018, respe ctively.

Rquired: journal entries and the following balances

1.Investment income Dec. 31, 2017

2. Investment loss 2018

3. Investment Carrying value for 2017 and 2018