BUSINESS COMBINATION

On January 1, 2019, ABC Co. acquired all of the assets and assumed all of the liabilities of DEF, Inc. As of this date, the carrying amounts and fair value of the assets and liabilities of DEF acquired by ABC are shown below: On the negotiation for the business combination, ABC Co. incurred transaction costs amounting to P150,000 for legal, accounting, and consultancy fees. Required: 1. If ABC Co. paid P2,000,000 cash as consideration for the assets and liabilities of DEF, Inc. How much is the goodwill (gain on bargain purchase) on the business combination? (note: If gain on bargain purchase just put a negative sign (-) before the amount) . 2. If ABC Co. paid P900,000 cash as consideration for the assets and liabilities of DEF, Inc. How much is the goodwill (gain on bargain purchase) on the business combination? (note: If gain on bargain purchase just put a negative sign (-) before the amount)