Giants Company acquired 40% interest in an associate, 49ers Company, for P5,000,000 on January 1, 2017. At the acquisition date, there were no differences between fair value and carrying amount of identifiable assets and liabilities. 49ers Company reported net income of P3,000,000 for 2017 and P4,000,000 for 2018. 49ers Company paid dividend of P500,000 in 2017 and P1,500,000 in 2018. On July 1, 2017, 49ers Company sold an equipment for P1,500,000 to Giants Company. The carrying amount of the equipment is P1,000,000 at the time of sale. The remaining life of the equipment is 5 years and Giants Company used the straight line depreciated. On December 1, 2018, 49ers Company sold an inventory to Giants Company for P2,800,000. The inventory had a cost of P2,000,000 and was still on hand on December 31, 2018.What is the investor’s share in the profit of the associate for 2017?   1,200,000 1,000,000 1,020,000 1,040,000

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