Required with solution

B Combination 39 13-13: Astro Corporation purchased the net assets of Bistro Corporation for P160,000. On the date of the purchase, Bistro Corporation had no long-term investments in marketable securities. The liabilities of the corporation amounted to P20,000. The market values of its assets were: Current assets P 80.000 Noncurrent assets 120,000 Total P200,000 The noncurrent assets and goodwill income from acquisition) acquired should be recorded at: a. b. c. d. Noncurrent assets P120,000 P100,000 P140,000 P150,000 (Income from acquisition) Goodwill P(20,000) P 0 P100,000 P 0 13-14: On April 1, 2017, the Rolex Company paid P600,000 for the net assets of Seiko Company in a transaction properly accounted for as acquisition. On this date, the assets and liabilities of Seiko Company were as follow: Cash Merchandise inventory Plant assets (net) Liabilities P 60,000 180,000 360,000 135,000 Furthermore, it was determined that the merchandise inventory of Seiko Company had a fair market value ofP142,500 and the plant assets of P420,000. What should be the amount recorded as goodwill by Rolex Company as a result of the business combination? a. P 0 b. P 37,500 c. P112,500 d. P112,000