What the net assets of the combined company should reported

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Question - DDD Company issued its ordinary shares for the net assets of EEE Company in a business combination treated as acquisition. DDD's ordinary share issued was worth P1,000,000. At the date of combination, DDD's net assets had a book value of P1,200,000 and a fair value of P1,600,000. EEE's net assets had a book value of P650,000 and a fair value of P800,000. Immediately following the combination, the net assets of the combined company should have been reported at what amount?

Reference no: EM132876862

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