On July 1, 2021, Harry Company borrowed P160, 000 to purchase 80 percent of the outstanding ordinary shares of Zayn Inc. This loan carrying a 12 percent annual rate, is payable in 10 annual installments beginning July 1, 2022. Summarized portion of Harry's and Zayn's statement of Financial Position as of June 30, 2021, are as follows:

	Harry Company	Zayn Company
Total assets	800,000	300,000
Total liabilities	250,000	155,000
Total shareholders' equity	550,000	145,000

The book values of Zayns assets and liabilities approximated except for accounts payable, which had a fair value that was P5, 000 more than the book value. Any remaining difference is attributable to goodwill.

Question

In the consolidation of statement of financial position compute for total assets and total liabilities:

Choices:

a. Total Assets - P1.71M; Total Liabilities P570,000

b. Total Assets - P1.90M; Total Liabilities P670,000

c. Total Assets P2.10M; Total Liabilities P410,000

d. Total Assets - P1.16M; Total Liabilities P570,000