BEA Co. merged into PIA Co. on June 30, 2023. In exchange for the net assets at fair market value of BEA Co. amounting to P2,785,800, PIA issued 68,000 common shares at P36 par value, then going at a market price of P41 per share. Out of pocket costs of the combination were as follows (all amounts are in Philippine Peso):

Legal fees for the contract of business combination 174,700

Audit fee for SEC registration of stock issue 198,400

Printing cost of stock certificates 144,900

Broker's fee 135,000 Accountant's fee for pre-acquisition audit 161,000

Other direct cost of acquisition 90,400

General and allocated expenses 115,300

Listing fees in issuing new shares 172,000

What is the amount of expense to be recognized in the statement of comprehensive income for the year ended December 31, 2023?

a.P765,400

b.P851,700

c.P1,191,700

d.P676,400

On September 18, 2019, JR Co. acquired all of JM Inc.'s P2,000,000 identifiable assets and P500,000 liabilities. Book values of the JM's assets and liabilities equal to their fair values except for the overvalued plant and equipment. As a consideration, JR issued its own shares of stock with a market value of P1,600,000. The merger resulted into P700,000 goodwill. Assuming JR had P5,000,000 total assets prior to the combination. How much is the combined total assets?

a.P6,400,000

b.P6,600,000

c.P7,100,000

d.P7,000,000

On February 28, 2023, MER Company merged withGer Company. MER exchanged three of its ordinary shares for each share of GER's ordinary shares. The fair value of MER's ordinary shares was P10/share. Total consideration transferred by MER company Amounted to P900,000. Acquisition cost paid by MER related to the business combination amounted to P30,000.

The Statement of financial position accounts prior to the merger are presented below:

MER Co.

GER Co.

Book Value

FMV

Current Assets

120,000

80,000

110,000

Plant Assets

450,000

360,000

820,000

Goodwill

90,000

20,000

Current Liabilities

105,000

50,000

50,000

Notes Payable

120,000

Bonds Payable

300,000

280,000

Ordinary Shares (P1)

150,000

(P5)

225,000

Retained Earnings

210,000

(40,000)

1.How much is the total assets in the statement of financial position of MER Company after the business combination?

a.P1,590,000

b.P1,890,000

c.P1,560,000

d.P1,860,000

2.What is the amount of goodwill after the merger?

a.Some other amount

b.P90,000

c.P390,000

d.P300,000