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25. Subsidiary Company was merged with Parent Corporation on December 31 2021. In the business combination parent corporation issued 40,000 shares of its P100 par

25. Subsidiary Company was merged with Parent Corporation on December 31 2021. In the business combination parent corporation issued 40,000 shares of its P100 par value ordinary shares, with market price of P127 per share. Fair market value agrees with book values, except for land which has a market value higher by P250,000. Additional cash payments were made by parent corporation in completing the combination, P25,000 for stock issue costs and P20,000 for direct cost. The stockholders equity section of each company's balance sheet before the combination was:

Parent Corporation Subsidiary Company

ordinary shares 8,450,000 5,360,000

additional paid in capital 3,700,000 1,850,000

retained earnings 4,080,000 (1,670,000)

total 16,230,000 5,540,000

the retained earnings immediately after the combination is:

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