The blanket makes investments in different subsidiary companies. On 1 July 2021, it purchased 30 percent of equity shares of Duvet for P2,000,000, which gave Blanket a significant influence over Duvet.

The fair value of Duvet’s net assets at acquisition was approximated to be their net book values with one exception of buildings. The buildings have 10 years as their remaining useful life, with a netbook value of P1,000,000 and a fair value of P1,800,000.

From 1^st July 2021 to 31^st December 2021, Blanket bought goods worth P1,000,000 from Duvet anticipating a profit of P100,000. All the goods remained unsold and were held in Blanket’s inventory. The sale was on credit and the invoice has not been settled yet.

For the year ended 31 December 2021, Duvet made a profit after tax of P800,000. On the same date of 31 December 2021, there is a belief in the directors of Blanket their investment in the associate should be impaired by P50,000.

You are required to prepare the extracts from both the consolidated statement of financial position and as well as the consolidated statement of profit or loss shows, showing clearly the treatment of the association for the period ending 31 December 2021.