Problem 1

On January 1, 2011, Pamela Corporation and Sheila Company have entered into a business combination agreement under which Pamela will issue 8,000 shares of its P10 par value ordinary share capital to acquire all the identifiable net assets of Sheila Company. Just prior to the business combination, the individual statements of financial position of Pamela and Sheila showing the carrying value and their fair value are as follows:

		Pamela Corporation					Sheila Corporation
Statement of Financial Position Item		Book Value		Fair Value				Book Value		Fair Value
Cash and Receivables		P150,000		P150,000				P 40,000		P 40,000
Land		100,000		170,000				50,000		85,000
Plant Assets (net)		300,000		400,000				160,000		230,000
Total Assets		P550,000		P720,000				P250,000		P355,000
Ordinary Share Capital		P200,000						P100,000
Share Premium		20,000						10,000
Accumulated Profits		330,000						140,000
Total Equities		P550,000						P250,000

As of acquisition date, Pamela shares currently are trading at P50 and Sheila P5 par value shares are trading at P18 each.

Required:

Determine the amount to be reported immediately following the business combination for each of the following items in the consolidated statement of financial position.

1. Cash and Receivables
2. Land
3. Plant Assets (net)
4. Goodwill
5. Ordinary Share Capital
6. Share Premium
7. Accumulated Profits