Problem A Desktop Company acquired 80% of Laptop Company's ordinary share for P700,000 cash. At that date, Laptop reported assets with book value of P1,240,000, and it has liabilities with book value P600,000. Contingency amount to be paid by Desktop Company within the year amounts to P50,000. An examination of Laptop Company's books showed that its notes payable is overvalued by 110,000 , while its inventories are overvalued by P20,000. A goodwill of P100,000 is also reported on the separate books of Laptop. The carrying value of the equipment of the acquiree is P120,000 less than its fair value. 1. How much is the goodwill arising on combination