ANSWER ONLY. ACCOUNTING FOR BUSINESS COMBINATION

On January 3, 2020 to Land corporation purchased 87,500 scenting 35% interest in Sun company's 250,000 ordinary shares for P165,500. Land Corp accounts for the investment under the equity method.

On December 31 2021, Sun Company has a net income of P12,000 and paid dividends of P10,000 to its shareholders. On April 1, 2022, Sun company re-acquired its own 125,000 shares, giving Land Corp control over Sun Company.

• The fair value of net identifiable assets of Sun Co is P800,000
• Land Corp uses the proportionate share of the acquiree's net identifiable assets to measure the non-controlling interest.

Which of the ff statements is/are INCORRECT?

a. the total goodwill from combination to zero.

b. the gain on re-measurement is P240,000

c. The parent company (Land Corp) shall debit investment in subsidiary account for P560,000

d. The investment in associate shall be credited for P200,000

e. all of the above