On January 1, 2020, Spongebob Corporation acquired the net assets of Patrick Inc. The acquirer transferred cash amounting to P3,000,000 and obligates itself to pay additional P1,500,000 after one year if the market price of Spongebob Corporation increased by 50%. The business combination resulted to a goodwill of P300,000 At the date of acquisition, it is estimated that there is a 70% probability that the condition will be met. On March 1, 2020, The operations of Spongebob Corporation was halted due to COVID 19 - pandemic lockdown and restrictions, this resulted to a 30% decrease in probability estimation of the contingent consideration. 14. What is the value of contingent consideration on March 1, 2020? a. 1,500,000 b. 1,050,000 c. 450,000 d. 600,000 15. What is the effect of the March 1, 2020 information to the recognized goodwill? a. Goodwill decreased by P450,000. b. Gain on bargain purchase will be recognized in the amount of P150,000. c. Gain on bargain purchase will be recognized in the amount of P300,000. d. No effect in goodwill