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please provide solutions and explanation. thank you On July 1, 2022, Entity A, a public entity, acquired 80% of ordinary shares of Entity B by

please provide solutions and explanation. thank you

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On July 1, 2022, Entity A, a public entity, acquired 80% of ordinary shares of Entity B by issuing its own 20,000 ordinary shares with par value of P10 and quoted price of P15. In addition to the shares issued, Entity A also issued bonds payable classified as financial liability at amortized cost with face value of P80,000 and quoted at 125. In connection with the acquisition, Entity A paid the following costs: Transaction cost related to business combination capitalized by Entity A as part of its Investment in Subsidiary 12,000 Indirect cost of business combination 5,000 Stock issuance cost 30,000 Bond issue costs 20,000 On Dec 31, 2021, Entity B's net assets is reported at P550,000 in its statement of financial position. The interim statement of financial position for the six months ended June 30, 2022 of Entity B reports a net income of P70,000 with no dividend declaration. On July 1, 2022, Entity B's net assets and liabilities are properly valued except for an equipment which is overvalued by P20,000 that has remaining life of 5 years on such date. On July 1, 2022, the non-controlling interest is appraised at a fair value of P1 10,000. On Sept 1, 2022, Entity A leased an investment property to Entity B at a monthly rental of P2,500 for a period of two years. On Oct 1, 2022, Entity B sold a machinery to Entity A with a book value of P12,000 at a selling price of P16,000. The machinery has remaining life of 4 years on the date of sale. Entity A accounted its Investment in Entity B using cost method in its separate financial statements. On Dec 31, 2022, the retained earnings of Entity A has a balance of P5,000,000 in its separate financial statement of financial position. Entity A and Entity B reported the following information in their separate income statements for the year ended Dec 31, 2022. Entity A Entity B Net Income 1,000,000 100,000 Dividend Declared 200,000 20,000 1. What is the goodwill or (gain on bargain purchase) as a result of business combination? 2. What is the amount of non-controlling interest in net assets to be presented by Entity A in its Dec 31, 2022 Consolidated Statement of Financial Position? 3. What is the amount of consolidated retained earnings to be presented by Entity A in its Dec 31, 2022 Consolidated Statement of Financial Position

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