On January 2, 2019, Pacquiao Corp. acquired 50,000 ordinary shares of Morales Inc. at P325 per share. Morales' books contained the following selected information as of last reporting date, December 81, 2018: Ordinary shares, P100 par, 200,000 shares issued and outstanding P20,000,000 10% Preference shares, P50 par, 100,000 shares issued and outstanding 5,000,000 Share premium on Ordinary shares 15,000,000 Accumulated prots as of December 31, 2018 20,000,000 Net Income for the year 2018 5,000,000 Dividends were declared and paid on preference shares on December 31, 2018. Morales' Building which had a remaining life of 5 years was understated by P4,000,000 on the acquisition date. Any remaining excess over the book value, is attributable to unidentiable asset. On December 31, 2019, Morales reported total net income of 132,500,000