Butter Company is negotiating to acquire Jelly Company. Butter manufactures and sells wood burning stoves and Jelly Company produces parts that are required to manufacture stoves. Jelly enjoys an exceptional reputation and Butter management believes it can continue Jellys level of income and satisfy its own need for parts. The recorded amounts and current values of the assets and liabilities of Jelly are:

	Assets	Liabilities
Recorded amounts	P30,000,000	P12,000,000
Current values	37,500,000	7,500,000

Jellys earnings for the past 5 years averaged P7,500,000. This is believed to be a reasonable estimate of future income. The level of income normally experienced by enterprises similar to Jelly is 15%. Butter and Jelly agreed to capitalize average excess earnings at 25% in estimating the value of goodwill. How much should Butter pay in acquiring Jelly?