Astro Corporation purchased the net assets of Bistro Corporation for P160,000

Astro Corporation purchased the net assets of Bistro Corporation for P160,000. On the date of the purchase, Bistro Corporation had no long-term investments in marketable securities. The liabilities of the corporation amounted to P20,000. The market values of its assets were: Current assets P 80.000 Noncurrent assets 120,000 Total P200,000 The noncurrent assets and goodwill income from acquisition) acquired should be recorded at: a. b. c. d. Noncurrent assets P120,000 P100,000 P140,000 P150,000 (Income from acquisition) Goodwill P(20,000) P 0 P100,000 P 0 13-14: On April 1, 2017, the Rolex Company paid P600,000 for the net assets of Seiko Company in a transaction properly accounted for as acquisition. On this date, the assets and liabilities of Seiko Company were as follow: Cash Merchandise inventory Plant assets (net) Liabilities P 60,000 180,000 360,000 135,000 Furthermore, it was determined that the merchandise inventory of Seiko Company had a fair market value ofP142,500 and the plant assets of P420,000. What should be the amount recorded as goodwill by Rolex Company as a result of the business combination? a. P 0 b. P 37,500 c. P112,500 d. P112,000