The January 1, 2011 statement of financial position of Skittle Company at book and market values is as follows:

	Book Value		Fair Value
Current Assets	P 800,000		P 750,000
Property and Equipment (net)	900,000		1, 000,000
Total Assets	P 1,700,000		P1,750,000
Current Liabilities	P 300,000		P 300,000
Long-term Liabilities	500,000		460,000
Ordinary Share Capital, P1 par	100,000
Share Premium	200,000
Accumulated Profits	600,000
Total Liabilities and Shareholders’ equity	P1,700,000

Polypeptide Company paid P950,000 in cash for 90% of Skittle Company’s ordinary share capital.

Required:

1. Prepare a journal entry on Polypeptide’s books to record the acquisition of the Skittles share.
2. Prepare a schedule of the allocation of the difference between the consideration given and the book value of interest acquired from Skittle Company.
3. Prepare the elimination entries for the consolidated statements worksheet.