You were assigned to go through the financial statements of Conrado Corporation as of and for the period ended December 31, 2020. This is the first time Conrado Corporation's financial statements are being examined since it started operations in 2018. a. The following is an analysis of the company's accumulated profits account Date Particulars 12/31/15 2018 Net Loss Debit Credit 200,000 Balance (200,000) 12/31/16 2019 Net Income 600,000 400,000 1/31/17 Payment of Dividends 300,000 100,000 12/31/17 2020 Net Income 900,000 1,000,000 b. No dividends were declared in 2018. Dividends declared in December 2019 and 2020 were paid on January of the following years. The 2020 dividends were at P500,000. C. The following items were omitted at each year end: Accrued Salaries Unused Supplies Unearned Rent Income 2018 P50,000 30,000 2019 2020 P90,000 P120,000 25,000 20,000 40,000 d. A three-year fire insurance amounting to P180,000 was paid and recognized as expense on June 30, 2018. The insurance however covers the period July 1, 2018 to June 30, 2021. e. An equipment with a cost of P400,000 was fully expensed in September 30, 2018. Based on your discussions with the management, the cost should have been capitalized and depreciated using straight-line method over its eight-year useful life. What is the adjusted net income in 2018?