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Question - On January 2021, La Union Company acquired 20% of the outstanding ordinary shares of Pangasinan Company for P8,000,000. This investment gave La Union the ability to exercise significant influence over Pangasinan. The carrying amount of the acquired shares was P6,000,000. The excess of cost over carrying amount was attributed to a depreciable asset which was undervalued on Pangasinan's balance sheet and which had a remaining useful life of ten years. For the year ended December 31, 2021, Pangasinan reported net income of P1,800,000 and paid cash dividends of P400,000 and thereafter issued 5% stock dividend. What is the carrying amount of the investment in Pangasinan Company on December 31, 2021?
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