On August 1,2022 , Honesty Company acquired the net assets of Reality Company for a consideration transferred of P17,450,000 cash. The following additional data relates to the combination: - At the acquisition date, the carrying amount of Reality's net assets was P11,925,000 and a temporary appraisal of P12,385,000 was attributed to the net assets. - In addition to the consideration transferred, another P1,015,000 cash is to be transferred nine months after the acquisition date if a specified target profit was met. - At the acquisition date, there was a low probability of the target profit being met so the fair value of contingent consideration was determined to be P468,000. - On December 31, 2022, an update of the provisional fair value of P16,815,000 was attributable to the net assets. Also, at year end, the estimated amount of contingent consideration is determined to decreased by P72,000 from the last date of change in estimate. - On March 31, 2023 the estimated amount of contingent consideration is determined to be probable at P284,000. - On July 1, 2023, the temporary appraisal of net assets decreased by P640,000 from the last valuation date. - The provisional fair value was finalized on August 31, 2023 with an amount that is higher by P1,070,000 from the temporary appraisal as of July 1, 2023. - Subsequently, the target profit was met and the additional P1,015,000 was transferred. Required 1. How much is the goodwill presented in the book of the acquirer in relation to the acquisition as of: a. December 31, 2022 b. December 31,2023 2. What is the entry to record the additional payment of P1,015,000