1. Assume the Petron Company is to acquire Shell Company. Shell has the following balance sheet accounts with their respective Petron values on December 31, 2019 follows: Book Petron Book Petron Value Value Value Value Cash P P Current Liabilities P P25,000 40,000 40,000 25,000 Marketable 60,000 66,000 5%, 5 yr. Bonds 100,000 100,000 Securities Payable Inventory 100,000 110,000 Common Stock, 10,000 Par P1 PPE 260,000 505,000 APIC 140,000 Retained Earnings 185,000 Total 460,000 Total 460,000 Additional Information: 1. A customer list with a significant value exists. Its value based on discounted cash flow based on estimated future cash flows is P125,000. 2. The premium on bonds payable based on adjusted market value, using market based interest rate applied to contractual cash flows is P4,000. 3. An estimated warranty liability estimated on discounted cash flow based on future cash flows is P12,000 Petron Company issued 40,000 shares of its P1 par value common stock with a market value of P20 each for the net assets of Shell Company. Petron also incurred the following costs of P47,000 as a result of this transaction: . P16,000 for consultant's and brokerage fee, P5,000 for accountant's fee and P4,000 for attorney's fee. . Internal secretarial and administrative costs of P10,000 are indirectly attributable to the combination. Cost to register the stocks such as accountant's and legal fees and issued (printing stock certificates) stock certificates total P12,000