The following balance sheets were prepared for Red Velvet Corp. and Blackpink Co. on January 1, 2017, just before they entered into a business combination. Cash Accounts Receivable Merchandise Inventory Building and Equipment Accumulated Depreciation Goodwill Total Assets Red Velvet Corp. P 210,000 75,000 200,000 400,000 (100,000) Blackpink Co P 5,000 20,000 50,000 100,000 (25,000) 50,000 P 200,000 P 785,000 P 125,000 200,000 P 70,000 30,000 210,000 Accounts Payable Bonds Payable Common Stock: P30 par value P20 par value Additional paid-in capital Retained Earnings Total Liabilities & Stockholders' Equity 50,000 200,000 P 785,000 50,000 10,000 40,000 P 200,000 On that date, the fair market value of Blackpink's inventories and building and equipment were P78,000 and P124,000 respectively, while bonds payable has a fair value of P42,000. The fair values of all other asset and liabilities of Blackpink (except for goodwill) were equal to their book values. Red Velvet Corp. acquired the net assets of Blackpink Co. by issuing 2,500 shares of its P30 par value common stock (current fair value P36 per share) and purchase price in cash amounting to P12,000. Contingent consideration that is determinable (probable and reasonably estimated) amounted to P2,000 (discounted value). Additional cash payment made by Red Velvet Corp. in completing the acquisition were: Legal fee for contract of business combination, P8,000; Accounting and legal fees for SEC registration, P11,000; Printing costs of stock certificates, P6,000; Finder's fee, P7,000; Indiret cost, P5,000. Requirement: As a result of the business combination, the amount of total assets in the books of Red Velvet Company . As a result of the business combination, the amount of retained earnings in the books of Red Velvet Company