On January 1, 2020, IntelBiz Co. acquired 60% interest in XYZ, Inc. for 2,000,000 cash. IntelBiz. incurred transaction costs of 100,000 in the business combination. IntelBiz. elected to measure NCI at the NCIs proportionate share in XYZ, Inc.s identifiable net assets. The fair values of XYZs identifiable assets and liabilities at the acquisition date were 6,000,000 and 3,500,000, respectively. How much is the goodwill (gain on a bargain purchase)?

Select one:

a. (P 478,000)

b. P 478,000

c. P 500,000

d. (P 500,000)