pls answer and provide solution and explanation On January 2, 2020, P Company purchased the net asset of S Company by paying P850,000cash and issuing shares of stocks at P3,110,000 fair market value. Book value and fairvalue data on the Statement of Financial Positions on January 2, 2020 are as follows:S CompanyBook Value300,000980,000710,0001,520,000P CompanyFair Value4,600,0001,000,0001,300,0001,460,000Book ValueFair ValueCashAccounts ReceivableInventoryBuilding & Equipment, net4,600,0001,000,0001,500,0001,800,000300,000 4.9-980,000600,000 o1,064,000 25480,0003,024,00090,0003,600,000GoodwillTotal8,900,0008,360,000570,000 s1a1,000,0001,600,000900,000570,000600,000960,0001,470,0003,600,000Liabilities1,000,000Share CapitalShare PremiumRetained Eamings5,400,0008,900,000TotalPincurred and paid legal and brokernge fees of P25,600 for business combination; share issuecosts of P23,000 and P12,000 indirect acquisition costs. It is determinable that contingency feeof P11,800 would be paid within the year.CHAPTER 1: BUSINESS COMBINATIONPage 5431. The total sharecholders' equity after the business combination isa P10,949,400b. P7,900,000c. PI0,937,600d. PI1,010,000

In case one company overtake the assets and liabilities of another company , then accounting for…

On January 2, 2020,P Company purchased the net asset of S Company by paying P850,000 cash and issuing shares of stocks at P3,110,000 fair market value. Book value and fair value data on the Statement of Financial Positions on January 2, 2020 are as follows: P Company Book Value S Company Fair Value Fair Value 4,600,000 1,000,000 1,300,000 1,460,000 Book Value 300,000 980,000 710,000 1,520,000 90,000 3,600,000 300,000 980,000 600,000 1,064,000 80,000 3,024,000 Cash Accounts Receivable 4,600,000 1,000,000 1,500,000 1,800,000 Inventory Building & Equipment, net Goodwill Total 8,900,000 8,360,000 570,000 51 570,000 600,000 960,000 1,470,000 3,600,000 1,000,000 一 Liabilities Share Capital Share Premium Retained Earnings Total 1,000,000 1,600,000 900,000 5,400,000 8,900,000 Pincurred and paid legal and brokerage fees of P25,600 for business combination; share issue costs of P23,000 and P12,000 indirect acquisition costs. It is determinable that contingency fee of P11,800 would be paid within the year. CHAPTER 1: BUSINESS COMBINATION Page 31. The total shareholders' equity after the business combination is a PI0,949,400 b. P7,900,000 c. PI0,937,600 d. PI1,010,000