ACCOUNTING FOR BUSINESS COMBINATION

CONSOLIDATION - DATE OF ACQUISITION

Financial Company had ordinary share of P350,000 and retained earnings of P490,000. Market Inc. had ordinary share of P700,000 and retained earnings of P980,000. On January 2, 2020, Market issued 34,000 shares of ordinary share with a P12 par value and a P35 fair value for all of Financial Company's outstanding ordinary share. This combination was accounted for as an acquisition. The acquirer incurred and paid business combination expenses of P45,000 and share issuance costs of P35,000. Prior to combination, Financial Company reported a total liability of P120,000 and Market reported a total liability of P360,000.

1. After the combination, what was the consolidated assets?

2. After the combination, what was the consolidates net assets?