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Question - On January 1, 2X19, an investor acquired 20% interest in an investee enabling the investor to exercise significant influence over the investee. The identifiable assets and liabilities of the investee are recorded at fair value. During the year, the investee reported a net income of P2,000,000 and paid no dividend. Also, during the same year, the investee sold inventory costing P200,000 for P300,000 to the investor. The inventory is unsold by the investor on December 31, 2X19. Ignoring income tax, compute the investor's share in the profit of the associate for 2X19.
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