Presented below are the financial balances for ALPHA COMPANY and BETACOMPANY as of December 31, 2020, immediately before ALPHA COMPANY acquired BETA COMPANY. Also included are the fair values for BETA COMPANY's net assets at that date. ALPHA BETA BETA COMPANY COMPANY COMPANY (Book Values) (Book Values) (Fair Values) Cash P870,000 P240,000 P240,000 Receivables 600,000 600,000 600,000 Inventory 1,230,000 420,000 580,000 Land 1,800,000 260,000 250,000 Buildings 1,800,000 540,000 650,000 Equipment 720,000 380,000 400,000 Accounts payable (570,000) (240,000) (240,000) Accrued expenses (270,000) (60,000) (60,000) Long-term liab. (2,700,000) (1,020,000) (1,120,000) Common stock, (1,980,000) P20 Common stock, (420,000) P5 APIC (210,000) (180,000) Retained earnings (1,290,000) (520,000) On December 31, 2020, ALPHA COMPANY issued 50,000 share of its common stock with a fair value of P35 per share for all of the assets and liabilities of BETA COMPANY. Stock issuance costs of P15,000 and direct costs of P10,000 were paid, however, a P20,000 direct cost and a P5,000 indirect cost remain unpaid. ALPHA COMPANY is applying the acquisition method in accounting for BETA COMPANY. To settle a difference of opinion regarding BETA COMPANY's fair value, ALPHA COMPANY promises to pay an additional P5,200 to the former owners if BETA COMPANY's earnings exceed a certain sum during the next year. Given the probability of the required contingency payment and utilizing a 4% discount rate, the expected present value of the contingency is P5,000