Pond Corporation exchanges 100,000 shares of newly issued P1 par value common stock with a fair market value of P20 per share for all of the outstanding p5 par value common stock of Silk Inc. and Silk is then dissolved. Pond paid the following costs and expenses related to the business combination:

• Costs of special shareholders' meeting to vote on the merger, P12,000
• Registering and issuing securities, P10,000
• Accounting and legal fees, P18,000
• Salaries of Pond's employees assignedto the implementation of the merger, P27,000
• Cost of closing duplicate facilities, P13,000

In the business combination of Pond and Silk:

Select one:

a.

Only the accounting and legal fees are included in the purchase price of Silk.

b.

All of the costs except those of registering and issuing the securities are included in the purchase price of Silk.

c.

The costs of registering and issuing the securities are included as part of the purchase price for Silk

d.

The salaries of Pond's employees assigned to the merger are treated as expenses.