Reference no: EM133053084

Question - On January 1, 2022, Alpha Company acquired 75% of the shares of BETA Company for an amount which is P300,000 over the book of interest acquired. On this date, the balance sheet of ALPHA Company and BETA Company are as follows:

	ALPHA COMPANY	BETA COMPANY
ASSETS
CASH	P7,500,000	P1,300,000
ACCOUNTS RECEIVABLE	1,700,000	450,000
INVENTORIES	1,150,000	800,000
EQUIPMENT	5,000,000	800,000
PATENTS	200,000	50,000
TOTAL ASSETS	P15,550,000	P3,650,000
LIABILITIES
ACCOUNTS PAYABLE	P600,000	P200,000
NOTES PAYABLE	2,000,000	0
ORDINARY SHARE CAPITAL	5,000,000	2,000,000
ORDINARY SHARE PREMIUM	6,750,000	600,000
RETAINED EARNINGS	1,200,000	850,000
TOTAL LIABILITIES AND EQUITY	P15,550,000	P3,650,000

The identifiable assets and liabilities of Beta Company are fairly valued except for inventories which is undervalued by P100,000 while equipment is undervalued by P450,000. Paid direct and indirect expenses of P80,000 and 70,000, respectively. The interest not attributable to Alpha Company is measured at fair value.

Required -

1. How much is the goodwill recognized on the business. combination?

2. How much is the consolidated asset as of date of acquisition?