Papa Corporation and Mama Corporation have announced terms of an exchange agreement under which Papa will issue 8,000 shares of its P10 par value common stock to acquire all the assets of Mama Corporation. Papa shares currently are trading at P50, and Mama P5 par value shares are trading at P18 each. Book value and fair value balance sheet data on January 1, 2020, are as follows:

Balance Sheet Items

Papa Corporation

Mama Corporation

Book Value

Fair Value

Book Value

Fair Value

Cash and receivables

Land

Buildings and Equipment (net)

Total Assets

Common Stock

Additional paid-in capital

Retained earnings

Total equities

P150,000

100,000

300,000

P550,000

P200,000

20,000

330,000

P550,000

P150,000

170,000

400,000

P720,000

P40,000 50,000

160,000

P250,000

P100,000

10,000

140,000

P250,000

P40,000 85,000

230,000

P355,000

Required:

1.Provide the journal entry to be recorded in the books of PPP Corporation to record the acquisition of the net assets of MMM Corporation. (Write your answer inside the box provided. 1 point)

2.What will be the amount reported immediately following the business combination for each of the following items in the combines company's balance sheet? (Write your answer on blank provided. 7 points)

a.Common stock

b.Cash and receivables

c.Land

d.Buildings and equipment (net)

e.Goodwill

f.Additional paid-in capital

g.Retained earnings