Lucky Co. is offered 200,000 shares of Pacino Inc in exchange for its net assets. Pacino Inc share capital has a market value of P 11 per share. The offer is accepted. The statement of financial position of the two companies (in thousand pesos) are presented below:

Pacino.Inc.Lucky Co.

TotalAssets1,097.501,733.25

TotalLiabilities312.50383.25

Ordinary share capital, P 1 par, 800,000

Shares issued andoutstanding800,000

Ordinary share capital, no par, 2,500

Shares issued andoutstanding 25.00

Retainedearnings (15.00)1,325.00

Total Liabilities & shareholder'sequity1,097.501,733.25

What is the result of business combination?

A.850,000

B.875,000

C.0

D.1,415,000