To continue with Exercise 10. The trial balances at the end of 2022 appeared as follows: A Corp. B Corp. Current Assets P? P? Plant Assets 410,000 380,000 Investment in 8 Corp. 175,250 Cost of Goods Sold 312,900 214,500 Operating Expenses 138,000 150,000 Dividends, December 1, 2022 75.000 50.000 Total Debits P? P? Liabilities P260,000 P205,000 Share Capital, par P20 150,000 60,000 Share Premium 57.740 10,000 Retained Earnings, January 1, 2022 Sales 582,000 384,000 Dividend Income 45,000 Total Credits P? P?A Corp, and B Corp. agreed to an affiliation as of July 1, 2021. At the end of the year, trial balance of the two entities are as follows: A Corp. 8 Corp Current Assets P380,000 P310,000 Plant Assets 450,000 410,000 Investment in B Corp. 175,250 Cost of Goods Sold 282,890 141,500 Operating Expenses 128,000 130,800 Expenses of Business Combination 54,500 Dividends, December 1, 2021 50,000 40,000 Total Debits P1,520,640 P1,032,300 Liabilities P250,000 P251,300 Share Capital, par P20 150,000 60,000 Share Premium 57,740 10,000 Retained Eamings, January 1, 2021 444,900 327,000 Sales 582,000 384,000 Dividend Income 36,000 Total Credits P1,520,640 P1,032.300 On July 1, A Corporation issued 5,500 shares of its common stock in exchange for majority shares of B Corp common stock. Income was earned proportionately during the year. Use the parent approach in recognizing goodwill/gain, Plant asset is understated by P15,000 in the books of B Corporation with a remaining useful life of 5 years. Inventories is understated by P10,000 but only half of these were sold at the end of 2021