RC Company has a branch in Bohol. During 2016, the home office shipped to the branch merchandise billed at P150,000 including a markup of 20% on cost. The branch reports opening and closing inventories of P90,000 and P120,000, respectively, while the home office has a closing inventories of P210,000 which includes merchandise which are held on consignment valued at P10,000.

Both locations use the periodic inventory system. What closing inventory would be reported in the combined statement of income for the year 2016?

a. 96,000

b. 300,000

c.330,000

d. 320,000

Parent Company acquired 15% of Subsidiary Company's common stock for P500,000 cash and carried the investment using the cost method. A few months later, Parent purchased another 60% of Subsidiary's stock for P2,160,000. At that date, Subsidiary had identifiable assets of P3,900,000 and a fair value of P5,100,000, and had liabilities with a book value and fair value of P1,900,000. The fair value of the 25% non-controlling interest is P900,000.

The amount of goodwill to be recognized resulting from this combination:

a. 100,000

b. 84,000

c. P400,000

d. P300,000