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Business Combinations 35 13-4: On January 1, 2017, CJ Corporation acquired the net assets of Rex, Inc., by issuing 600,000 shares of its P10 par value common stock. Subsequently, Rex was liquidated and its assets and liabilities merged into CJ Corporation. CJ's stock was selling for P50 per share on January 1, 2017. The amount of goodwill recorded by CJ in connection with the combination was P6,120,000. CJ incurred P300,000 of legal and brokers fees associated with the combination and P30,000 of stock issuance costs. What is the fair value of Rex's net assets and the amount of the increase in CJ's stockholders' equity as a result of the combination, respectively? P23,880,000 and P30,000,000 b. P24,180,000 and P30,000,000 P24,180,000 and P29,970,000 P23,880,000 and P29,970,000 13-5: Pool Company issued 120,000 shares of P10 par common stock with a fair value of P2,550,000 for the net assets of Spot Company. In addition, Pool incurred the following acquisition-related costs: Legal fees to arrange the business combination P25,000 Costs of SEC registration, including accounting and legal fees Cost of issuing stock certificates 3,000 Documentary stamp tax 20,000 c. d. 12,000 Immediately before the business combination in which Spot Company was dissolved, Spot's assets and equities were as follows (in thousands): Book Valne Fair Value Current assets P2,000 P1.100 Plant assets 1,500 2,200 Liabilities 300 300 Common stock 2,000 Retained earnings 200 What is the amount of goodwill income from acquisition) and APIC to be recognized by Pool Company? a. P(450,000) and P1,335,000 b. P(410,000) and P1,200,000 c. P(425,000) and P1,185,000 d. P(450,000) and P1,315,000