14) On April 1, 2011, the Rolex Company paid P600,000 for the net assets of Seiko Company in a transaction properly accounted for as acquisition. On this date, the assets and liabilities of Seiko Company were as follows: Cash P 60,000 Merchandise inventory 180,000 Plant assets (net) 360,000 Liabilities 135,000 Furthermore, it was determined that the merchandise inventory of Seiko Company had a fair market value of Pl42,500 and the plant assets of P420,000. What should be the amount recorded as goodwill by Rolex Company as a result of the business combination? A P 0 B. P37,500 C. P112,500 D P112,000