GOOD Company is into paper-manufacturing business while LUCK Company is producing different kinds of drawing pencil. On June 1, 2017, GOOD Company decided to purchase 160,000 shares of the total outstanding shares of LUCK Company for cash amounting to P425,000. At that time, the balance sheet of LUCK Company includes a current assets of P180,000 and non-current assets of 320,000 while liabilities of P100,000, common stock of 200,000, additional paid in capital of 100,000 and retained earnings of P100,000.

There were no difference between the book values and fair values of the assets and liabilities of LUCK Company at the date of acquisition and any excess cost will be attributable to either the Goodwill or Bargain Purchase Gain.

In addition, the following information was provided by both companies:

1. On August 6, 2017, GOOD Corporation sold P35,000 of goods to LUCK Company with a gross profit rate of 15%. LUCK Company also sold P20,000 goods to GOOD Company and earned a gross profit of P4,000. The latter transaction showed a sales invoice dated, April 9, 2018.
2. GOOD purchased goods amounting to P30,000 on November 14, 2018. It reveals that the cost of this product is only P22,500. On February 14, 2019, LUCK Company purchased P32,000 worth of goods from GOOD company. The company employed a gross profit rate of 22% on this transaction.
3. The ending inventory of GOOD Corporation on May 31, 2018 includes P3,500 of goods coming from its purchase from LUCK Company. At the same date, there were P9,000 remaining inventory on LUCK's purchase from GOOD.
4. There is an unsold intercompany merchandise in the inventory of LUCK amounting to P6,000 while the ending inventory of GOOD contains P3,500 merchandise purchased from LUCK.
5. On June 1, 2019, GOOD owed LUCK P10,000, and LUCK owed GOOD P5,000 as a result of the intercompany sales.
6. GOOD paid P25,000 in cash dividends on March 20,2018 and 2019, LUCK paid its first cash dividend on March 10, 2019, giving each share of outstanding common stock a P0.15 cash dividend.

The trial balances of the two companies as of May 31, 2019, follow:

GOOD Corporation LUCK OHpay 390 0030 97:000 510 000 Property and Cquipright 199 1000 Goodwill 80000 106 300 Common Hick P0 50 par 190.060 200000 Additional Fold In Capital 100 000 Reddred Ging 1, 105 000 140.000 880.000 430.000 Chided Income Cou of Cook Sow 704030 50 4000 130 030 14.151.250 P4 151 300 P 1,175350 P1 176.300