On July 1, 2015, Kim Company acquired 20% of the outstanding ordinary shares of another entty for P5,000,000. The carrying amount of the acquired shares was P4,000,000. The excess of cost over carrying amount was atributable to an identfable intangible asset which was undervalued on the investee's statement of fnancial positon and which had a remaining useful life of 5 years. The investee reported net income of P6,000,000 for 2015, of which P4,000,000 was for the last six months of the year and paid cash dividends of P1,000,000 on ordinary shares and issued 10% stock dividend on December 31, 2015. What is the carrying amount of the investment in associate on December 31, 2015?
a.5,500,000
b.5,900,000
c.5,300,000
d.5,800,000