Michael issues 25,000 shares of its P1` par value Common stock shares with market value of P20 each for Johnson Company. Michael pays related acquisition costs of P35,000 How much is the Gain or goodwill to be recognized by Michael? What is the journal entries in the books of Michael?

PROBLEM 1: Assume that the company to be acquired by Michael, Inc. has the following balance sheet on the December 31,2011 acquisition date: Johnson Company Balance Sheet December 31, 2011 Note: A customer list with a significant value exist and there is an unrecorded warranty liability on prior product sales. Fair values for all accounts have been established as of December 31,2011 , in conformity with the fair value measurement as follows: Required: Record the acquisition of the net assets of Johnson Company related transactions on Michael Inc's books under the following situations