The following are the balances of LITTLE Company and BOY Company as of January 1, 20x1.

Dianne Company BV FV

Assets 4,000,000 4,200,000

Liabilities 1,000,000 900,000

Corpuz Company

Assets 3,000,000 2,900,000

Liabilities 500,000 600,000

The companies combined their resources and formed CHAN Co. The new company issues 6,000 shares of 500 par value common stocks with fair value of P600 and pays additional 500,000. The company also incurs direct costs of 50,000 and indirect cost of 20,000.

Determine the total assets of Chan Co. immediately after the business combination if contingent expenses of P100,000 are estimated to be incurred after 1 yr.