Business Combinations 45 13-26: Pearl Company is acquiring the net assets of Sam Company for an agreed- upon price of P900,000 on July 1, 2017. The value was tentatively assigned as follows: Current assets Land Equipment (5-year life) Building (20-year life) Current liabilities Goodwill P100,000 50,000 200,000 500,000 (150,000) 200,000 Values were subject to change during the measurement period. Depreciation is taken to the nearest month. The measurement period expired on July 1, 2018, at which time the fair values of the equipment and building as of the acquisition date were revised to P180,000 and P550,000, respectively. How much total depreciation expense should be recorded for 2018, a P63,500 b. P65,000 C. P61,500 d. P65,500 2. How much goodwill is presented in the 2018 statement of financial position? P230,000 b. P170,000 C. P180,000 d. P200,000