The January 1, 2011 statement of financial position of Skittle Company at book and market values is as follows:

Book Value

Fair Value

Current Assets

P800,000

P750,000

Property and Equipment (net)

900,000

1, 000,000

Total Assets

P 1,700,000

P1,750,000

Current Liabilities

P300,000

P300,000

Long-term Liabilities

500,000

460,000

Ordinary Share Capital, P1 par

100,000

Share Premium

200,000

Accumulated Profits

600,000

Total Liabilities and Shareholders' equity

P1,700,000

Polypeptide Company paid P950,000 in cash for 90% of Skittle Company's ordinary share capital.

Required:

1. Preparea journal entry on Polypeptide's books to record the acquisition of the Skittles share.
2. Preparea schedule of the allocation of the difference between the consideration given and the book value of interest acquired from Skittle Company.
3. Prepare the elimination entries for the consolidated statements worksheet.