Problem 3 On May 1, 2021, the separate statement of financial position of Labs Corporation and Babes Company are as foll

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Problem 3
On May 1, 2021, the separate statement of financial position of Labs Corporation and Babes Company are as follows:
Antonio Company
Tony Company
Comprehensive income
P108,000
P20,000
Dividend income
18,000
Labs
Babes
Cash
P145,700
P15,500
Accounts receivable
120,500
35,800
Inventories
42,500
10,200
Plant assets
185,800
78,000
Total Assets
P494,500
P139,500
Liabilities
P110,400
P29,000
Capital stock, P100 par value
200,000
50,000
Additional paid in capital
50,000
-
Retained earnings
134,100
60,500
Total liabilities and stockholders’ equity
P494,500
P139,500
On May 1, 2021, Labs acquired 100% of Simon’s outstanding capital stock for P150,000. Labs incurred additional P32,700 in acquisition related costs. All the assets of Simon are fairly valued except the plant assets with a fair value of P90,000 on May 1, 2021.
6. In the consolidated statement of financial position on May 1, 2021, what amount of total assets be reported?
7. Using the same data above, what amount of stockholders’ equity will be reported in the consolidated statement of financial position on May 1, 2021?
8. How much is the goodwill to be recognized on the combination