Under the IFRS for SMEs, what is the book value of investment in joint venture to be reported by Tanner Inc. as ofDecember 31, 20XA if the SME elects equity method? (Problem provided below)

a. P550,000 b. P600,000 c. P570,000 c. P500,000

On January 1, 20XA, Tanner Inc. a small and medium enterprise (SME), invested P500,000 cash in a joint venture for50% interest. For the year ended December 31, 20XA, the joint venture reported net income of P200,000 anddistributed cash dividend in the amount of P60,000. As of December 31, 20XA, the fair value of the investment injoint venture is P600,000 and the estimated cost of disposal is 10% of fair value. The value in use of the investmentis estimated at P550,000.