b. P70,000 87. Bats Inc., a new corporation formed and organized because of the recent consolidation of 1 Inc, and JJ Inc., shall issue 10% participating preferred stocks with a par value of P100 for II and JJ net assets contributions, and common shares with a par value of P50 for the difference between the total shares to be issued and the preferred shared to be issued. The total shares to be issued by Bats shall be equivalent to average annual earnings capitalized at 10%. Relevant data on ll and JJ follows: II JJ Total assets... P720,000 P921,600 Total Liabilities 432,000 345,600 Annual earings (average) ... 46,080 69,120 The total preferred shares to be issued and the amount of goodwill to be recognized by Bats are: a. Preferred shares: 8,640 Goodwill: P288,000 b. Preferred shares: 5.760 Goodwill: P288,000 C. Preferred shares: 2,880 Goodwill: P864,000 d. Preferred shares: 7.280 Goodwill: P864,000