Here are the pre-acquisition Statement of Financial Position of ABC Company and XYZ

Company on December 31, 2019:

ABC Co. XYZ Co.

Book value Book value Market value

Current assets P5,000,000 P2,000,000 P 1,500,000

Investments 1,000,000 500,000 500,000

Land 10,000,000 5,000,000 6,000,000

Buildings (net) 40,000,000 25,000,000 16,000,000

Equipment (net) 25,000,000 10,000,000 2,000,000

Total assets P81,000,000 P42,500,000

Current liabilities P4,000,000 P1,500,000 1,500,000

Long-term liabilities 20,000,000 10,000,000 12,000,000

Ordinary shares, P10 par 5,000,000 1,000,000

Share premium 40,000,000 20,000,000

Retained earnings 12,000,000 10,000,000

Total liabilities & equity P81,000,000 P42,500,000

In addition to the above, XYZ Co. has identifiable intangibles with a fair value of

P5,000,000, not recognized on its books but appropriately capitalized by ABC Co.

On January 1, 2020, ABC issues 400,000 shares of its stock, with a par value of

P10/share and a market value of P100/share, to acquire XYZ Company's assets and

liabilities.SEC registration fees are P1,100,000, paid in cash.

Assume ABC issued 90,000 shares of stock at a market value of P100 per share

with contingent cash consideration amounted to P500,000 that is present

obligation and reliably measureable, expected present value of earnout agreement

of P200,000 and probability present value of stock price contingency agreement

of P300,000. The following out-of-pocket costs in relation to acquisition are as

follows:

Legal fees for the contract of business combination P80,000

Broker's fee40,000

Accountant's fee for pre-acquisition audit100,000

Other direct cost of acquisition70,000

Internal secretarial, general and allocated

expenses

Documentary stamp tax on the new shares20,000

SEC registration fee of issued shares90,000

Printing costs of share certificates.50,000

Stock exchange listing fee 30,000

Make a Statement of Financial Position in Good Form immediately after the

Merger.

Determine the following:

(a) Total assets

(b) Total liabilities

(c) Share premium

(d) Retained earnings

(e) Stockholders'/Shareholders' equity