1 Pen Company acquired 70% of the outstanding common stock of Bal Corporation on January 1, 2016 for P1,780,000 cash. The statement of financial position of the Pen and Bal immediately after the acquisition shows the following information: Assets Cash Receivables - net Inventories Land Buildings - net Equipment - net Investment in Bal Total assets Liabilities and equity Accounts payable Other liabilities Share capital, P10 par Retained earnings Total equities Pen Co. P 320,000 800,000 700,000 1,000,000 1,100,000 800,000 1.780,000 P6,500,000 P 900,000 100,000 5,000,000 500,000 P6,500,000 Bal Corp. book value P 200,000 300,000 300,000 500,000 700,000 400,000 P2.400.000 P 800,000 500,000 1,000,000 100,000 P2,400,000 Bal Corp. fair value P200,000 300,000 500,000 600,000 900,000 300,000 d. Prepare a consolidation working paper. e. Prepare a consolidated statement of financial position. P800,000 400,000 The non-controlling interest is fair-valued at P600,000 on the date of acquisition. and to be measured by the acquirer at fair value. Required: a. Prepare the entry in the books of Pen Company to record the stock acquisition. b. Prepare a schedule to determine and allocate the fair value and book value differential. c. Prepare consolidation working paper entries.