What amount should Rose report units income statement from its investment in marie for the year ended December 31, 2010

Rose Inc. bought 40% of Marie Corp.'s outstanding common stock on January 2, 2010, ed for P400,000. The carrying amount of Marie net assets at the purchase date totaled Lout of P900,000. Fair values and carrying amounts were the same for all items except for plant and inventory, for which fair values exceeded their carrying amounts by P90,000 and P10,000, respectively. The plant has an eighteen-year life. All inventory was sold during 2010. During 2010, Marie reported net income of P120,000 and paid a P20,000 cash dividend. Assume that Rose uses the equity method to account for this investment. What amount should Rose report in its income statement from its investment in Marie for the year ended December 31, 2010? Select one: a. P42.000 b. P48,000 c. P32.000 d. P36.000