Problem 1: Benz Company is contemplating the purchase of the net assets of Cardinal Company for P 800,000 cash. To complete the transaction, direct acquisition costs are P 15,000. The statement of financial position of Cardinal Company on the purchase date is as follows: Cardinal Company Statement of Financial Position December 31, 2022 Assets Liabilities and Equity Current assets P 80,000 Liabilities P100,000 Land 50,000 Ordinary share (P10 par) 100,000 Building 450,000 Share Premium 150,000 Accumulated dep'n - bidg (200,000) Retained earnings 230,000 Equipment 300,000 Accumulated dep'n - eqpt [100.000) Total assets P 580,000 Total liabilities and equity | P 580,000 The following fair values have been obtained for Cardinal's assets and liabilities: Current assets . . . . . . . P 100.000 Land . . . . IN. 75.000 Building . . . 300,000 Equipment . .. 275.000 Liabilities . . 102,000 1. Record the purchase of the net assets of Cardinal Company on Benz Company's books. 2. Record the purchase of 100% of the ordinary shares of Cardinal Company on Benz's books. Cardinal Company will remain a separate legal entity